Happy Holidays! I’ve been meaning to write a comprehensive post about the changes in state sales taxes since the June 2018 Supreme Court “Wayfair” decision — which as many of you know, overruled the physical presence rule.
“While having a physical presence in a state still establishes a sales tax collection obligation, physical presence is no longer requisite.” As a result, states won the right to tax remote sales.
In the year and a half since the decision, 43 of the 45 states with a general sales tax (plus Washington, D.C.) have adopted economic nexus: They now require sellers with no physical presence but a certain amount of sales and/or transactions in the state to register with the tax department and collect and remit sales tax.
In the spirit of the holidays, Accounting Web reports that the City of North Pole, Alaska, is considering joining a local municipal league to tax online sales.
The Alaska Intergovernmental Remote Seller Sales Tax Agreement will “implement single-level, statewide administration of remote sales tax collection and remittance.” It will be overseen by the newly formed Alaska Remote Seller Sales Tax Commission.
During the December 2, 2019, North Pole City Council meeting, North Pole Mayor Mike Welch said “an online sales tax is something we have to do.”
Sorry for the extra administrative burden, Santa! If it’s anything like Illinois sales taxes, my guess is that it’s tougher than squeezing down a chimney — but seeing as you’ve mastered that challenge, I bet you’re up to this as well. Just make sure to consult with a small business tax professional first.
Source: Santa and Sales Tax: News from the North Pole | AccountingWEB