Traditionally, sales tax registration, collection and remittance obligations have been based solely on physical presence being established within a taxing jurisdiction. A company making sales using a storefront or sales people are generally required to register, collect and remit sales tax, while an out-of-state company making sales, into the same jurisdiction, generally would not have the same requirements. As a result of many out-of-state retailers not having the same sales tax obligations as their storefront counterparts, the economic landscape has shifted. As the number of non-taxed out-of-state and e-commerce transactions increases, state and local government revenues are decreasing. To combat the lost revenue, many state and local governments have extended the sales tax obligations to companies with economic nexus.
As more states transition to economic nexus, companies who previously had minimal sales tax reporting obligations may now find themselves with an extraordinary number of reporting obligations. It is important to know which states have passed economic nexus laws and how they impact your operations. Each state’s tax laws are different and ever-changing, thus expecting your in-house employees to keep up-to-date with the evolving tax laws, while simultaneously performing their duties, could lead to loss of productivity and reduced revenue. Rather than devoting your internal resources to constantly monitoring each state’s changing sales tax laws, allow State Tax Advisors to be your consulting firm. Our experts will take the time to learn what makes your company unique so we can provide customized consulting that will keep you informed of all the tax laws effecting to your company’s operations. Additionally, we will use our expertise to craft procedures that will ensure your company maintains compliance while taking full advantage of the tax laws.
State Tax Advisors is a full-service, multi-state, state and local tax solutions firm with expertise in a wide range of areas. In addition to economic nexus consulting, we provide multi-state sales tax consulting, sales and use tax audit defense, complete to partial sales tax compliance outsourcing and many more state and local tax services. For additional information about how we can help, please contact our experts today.