Jones Walker SALT Team partner, Alysse McLoughlin, will present on the “SALT in the Wound” panel at the COST Spring Conference. States continue to test the constitutional limitations on their taxing authority, and are sometimes successful in doing so. The panel will discuss the pivotal cases and the application of those decisions by
On June 1, 2024, Florida’s business rent tax will be automatically slashed from a 4.5% rate to a 2.0% rate due to implementation of its 2021 Wayfair legislation. Florida’s passage of Chapter 2021-2, Laws of Florida adopted economic nexus concepts related to the retail sale of tangible personal property by remote sellers and marketplaces. Part of the
With the fifth anniversary of Wayfair last week, the fallout from that case has been a hot topic recently. One day before the anniversary, the U.S. Supreme Court issued an order denying cert in Quad Graphics Inc. v. North Carolina Department of Revenue, signaling what will likely be a long hiatus for the Supreme
Louisiana House Bill 199, which would create a more centralized state and local sales tax collection system in Louisiana, has now been adopted by the House and Senate after negotiation in conference committee.
The legislative information regarding HB 199 can be found here.
The applicable conference committee report proposed by the appointed conference
Today, in a case of first impression that has captured national attention, the Louisiana Supreme Court held in a 4-3 decision that Wal-Mart.com (an online marketplace facilitator) is not required to collect and remit Jefferson Parish sales tax on behalf of its third-party sellers.
See Normand v. Wal-Mart.com USA, LLC, 2019-263 (La. 12/29/19), __
The date and time are now set for the much-anticipated oral argument of the Wal-Mart.com “marketplace” litigation matter in Louisiana’s highest court!
On September 4th, at 2:00 PM CT, the Louisiana Supreme Court will hear oral arguments of the taxpayer, Wal-Mart.com, and the local tax collector, the Jefferson Parish Sheriff’s Office (JPSO).
A link
The Louisiana Sales and Use Tax Commission for Remote Sellers (the “Commission”) has now officially issued its second information bulletin – Remote Sellers Information Bulletin (“RSIB”) 18-002 – which provides a general definition for “remote sellers,” as well as further administrative guidance regarding current and future registration, collection, remittance, and reporting requirements for “remote sellers.”
SALT Team partners Bill Backstrom, Andre Burvant, and Matt Mantle were quoted in numerous media outlets in October discussing the tax administration implications of the U.S. Supreme Court ruling in South Dakota v. Wayfair, allowing states to collect taxes on purchases from remote sellers. Bill was quoted in articles published by Law360
The Louisiana Sales and Use Tax Commission for Remote Sellers (the “Commission”) has now issued its first information bulletin – Remote Sellers Information Bulletin (“RSIB”) 18-001
– regarding the impact of the U.S. Supreme Court’s South Dakota v. Wayfair, Inc. decision on remote sellers selling to Louisiana purchasers.
A copy of RSIB 18-001 can be
In December 2017, the Mississippi Department of Revenue finalized a new sales and use tax regulation addressing remote sellers and establishing a $250,000 bright-line nexus standard. The department began that process in January 2017 by issuing a proposed regulation and refined it following a public hearing held in February. The regulation positioned the state to take advantage of any repeal of Quill’s physical presence test, but the department stated it would not enforce the new rule until the Supreme Court took that step. Now that Quill’s physical presence rule has been invalidated in Wayfair, taxpayers should expect the department to move forward with these remote-use tax collection efforts. The following information should help summarize Mississippi’s current rules and identify several important details and questions that have yet to be answered.
Statutory Background
Mississippi law [Section 27-67-4(2)(e)] has long required remote sellers to collect use tax if they have nexus with the state by “purposefully or systematically exploiting the consumer market provided by this state.” This could be accomplished “by any media-assisted, media-facilitated or media-solicited means, including, but not limited to, direct mail advertising, unsolicited distribution of catalogues, computer-assisted shopping, television, radio or other electronic media, or magazine or newspaper advertisements or other media.” This collection obligation is contained within the use tax code, not the sales tax code as may be the case in some other states.
Regulatory Bright-Line Rule
The final regulation specifies that sellers have a “substantial economic presence” if their sales into the state exceed $250,000 for the prior 12 months. The original proposed regulation would have based the sales threshold on the prior calendar year, so this change means sellers should track Mississippi transactions on a rolling, monthly basis if they are not otherwise registered. Unlike other states, Mississippi does not specify any minimum number of transactions to create nexus, and Department of Revenue officials have stated informally that a single transaction may meet the requirement when coupled with the other “market exploitation” criteria discussed below.
Continue Reading The Taxman Cometh: Mississippi Sales and Use Taxes in a Post-Wayfair World