The New York State Department of Taxation and Finance this week released its guidance when remote sellers need to collect and remit sales tax.
Check Out These Resources
- Do you need a business bank account for your online business? Take a look at our review of the five best bank accounts for sellers, some of which are free with no minimum balance or deposits. [sponsored]
- Boost your social media engagement with Publer. Learn how you can save time writing engaging content faster with AI. [sponsored]
- Could your online business use capital for growth? Here is a primer on revenue-based loans, and how they work.
In its guidance, the state said, “On June 21, 2018, the United States Supreme Court ruling in South Dakota v. Wayfair (138 S.Ct. 2080 ) eliminated the prohibition on a state imposing sales tax collection responsibilities on businesses that have no physical presence in that state.”
New York State Compliance Threshold
Remote sellers (out-of-state retailers) with more than $300,000 in sales of tangible personal property delivered in the state and more than 100 sales of tangible personal property delivered in the state in the immediately preceding four sales tax quarters are required to immediately register with the state. The sales tax quarters are:
- March 1 through May 31,
- June 1 through August 31,
- September 1 through November 30, and
- December 1 through February 28/29.
It should be noted that most other states followed South Dakota’s threshold of $200,000 in sales or 200 transactions in the previous calendar year.
Most other states copied the threshold enacted by South Dakota. But New York State uses a lower threshold by only allowing 100 transactions before sales tax reporting and remittance is required by remote sellers.
This could trigger a federal court challenge, but until such a challenge makes its way through the system, remote sellers will need to comply.
Refer to our Sales Tax Guide for more information.
Subscribe to Our Newsletter
We do not sell your information.
You can unsubscribe at any time.
Head over to our Facebook Group for Small Business Marketplace Sellers and interact with us and other small business owners. Follow us on Facebook, Twitter, or LinkedIn to stay up to date with relevant news and business insights for your online business.