Wayfair Chart – Sales Tax & Selling Out of State
With last year’s Wayfair ruling on sales tax collection, dealers can expect heightened enforcement actions in the coming year. The ruling tied sales tax collection to sales volume and the number of transactions.
HBK CPAs & Consultants released an updated Wayfair Tax Chart. This reference tool can be used by dealers to comply with the Wayfair statutes in effect in the various states.
Lance Formwalt details ways to evaluate risk and update sales tax exemption record-keeping in the March|April 2019 FARWEST Dealer.
Colorado Governor Signs New Tax Rules, Places Burden on Small Businesses
DENVER, CO (May 23, 2019) — Colorado Gov. Jared Polis signed legislation that codifies a controversial rule change announced last year by the state’s Department of Revenue establishing a destination-based sales tax system. Previously, online retailers assessed, collected and remitted sales tax based on the tax jurisdictions they share with their customers.
But under the new system, the retailers pay sales taxes based on their customers’ addresses. With more than 700 unique sales tax combinations in the state, due to its multitude of special taxing districts and home-rule cities, the new system could be a significant burden on small businesses.