Sales Tax Policy Changes

Massachusetts is launching a tax amnesty program on Nov 1, 2024. They have added FAQs to their webpage which you can view here. This program will run for 60 days ending on Dec 30, 2024.  Eligible taxpayers can request a waiver of penalties on outstanding taxes and interest paid during the amnesty period.

• If you have an eligible existing tax liability, you will receive an Amnesty Eligibility Letter. All you will need to submit for your Amnesty Request is your personal information, the Letter ID, and a valid payment method (e.g., bank account information, credit card).

• If you are filing a new return to report a tax due, you will need to complete your return to calculate your amount due. Once completed, you can complete your Amnesty Request using the information from the return. Don’t forget to either e-file or mail your completed return after you submit your Amnesty Request.

• If you are filing an amended return to report an increase in tax, you will need to complete your amended return to calculate your amount due. Once completed, you will need to sign on to your MassTaxConnect account to complete your Amnesty Request using the information from the amended return. Don’t have an account? No problem, it only takes a few minutes to register for MassTaxConnect. Don’t forget to either e-file or mail your amended return after you submit your Amnesty Request.

In general, a VDA is better than an amnesty due to its limited look back period. However, this amnesty has one as well making it a great option for those eligible. If you have any questions or would like assistance with this program and have receive an eligibility letter, please contact us at contact@salestaxandmore.com 

North Carolina recently repealed their transaction threshold effective July 1, 2024. Session Law 2024-28 was sent to the Governor’s desk on June 28, 2024. On July 1, he signed it and it immediately became effective.

There is no trailing nexus and now the remote seller threshold only includes a monetary threshold of 100k. Read more: https://www.ncdor.gov/sd-24-1-repeal-transaction-thresholdpdf/open

CO’s retail delivery fee will increase on July 1, 2024. The Department of Revenue makes an adjustment for inflation each year the rate of inflation is positive. The adjustment is the lesser of the actual rate of inflation or 5%. The retail delivery fee rate increases from $0.28 to $0.29 effective July 1, 2024.

For more information: https://tax.colorado.gov/retail-delivery-fee

On January 1 2024 Indiana elminated their 200 transaction threshold for remote sellers. However, they are still enforcing the 200 transactions for periods prior to 1/1/2024, so if you were over the 200 transactions in 2023 and were registered but not over the $100,000 threshold you can not deregister until 1/1/2025. To read more: https://www.in.gov/dor/business-tax/remote-seller-information/

We told you that we would let you know about any updates to the retail delivery in MN as we heard them. We are in receipt of some draft language. Here is what we believe based on language put out by the DOR. The actual language may change, but we believe the thought process will remain the same. Effective July 1, 2024, The Minnesota DOR will define "gross receipts" as the total amount received in money, by barter, or by exchange. It will exclude items that are not taxable that are listed separately on an invoice.

Rhode Island has made a major change to its annual sales tax reconciliation filing requirements for the tax year 2023 and beyond. Sales Tax permit holders are no longer required to submit the annual Sales and Use Tax Reconciliation Return (Form T-204R-Annual). Instead, a new form called Form RI-STR has been introduced, aligning Rhode Island's tax form with neighboring states and allowing taxpayers to reconcile sales periodically throughout the year.

The following is directly from the Alaska Municipal Sales Tax Program Quarterly News. “All digital goods and services delivered into ARSSTC jurisdictions should be assessed sales tax (following tax-exempt rules for entities). Digital goods and services include the categories listed below.”

New Jersey’s tax agency has announced its alignment with the Multistate Tax Commission’s (MTC) guidance on the application of PL 86-272 for income taxes. NJ is the second state behind California to adopt the MTC guidance on the federal level.

The state of New Jersey has enacted a corporation business law to update the corporation business tax nexus standard and update and amend other areas of corporate business law.

Effective for any periods ending on or after July 31, 2023, corporations deriving receipts from sources in New Jersey will now be deemed to have nexus if the corporation meets either of the following criteria:

On 8/1/2023 Louisianna will be removing its 200 transaction threshold. The $100k threshold will remain and will be the only economic threshold in LA. We are seeing more and more states move in this direction which is a positive trend for taxpayers. However, while this is a positive trend roughly 40% of states still have the 200 transaction threshold. Making it unwise to disregard across the board.