An article titled “The States Strike Back” on WebCPA.com outlines several ways that states are intensifying efforts to collect sales tax. This includes extending the definition of nexus: In addition to New York, North Carolina and Rhode Island with explicit nexus laws, “14 additional states [have] said that they would find nexus for in-state affiliates [which] suggests that these jurisdictions may believe that the Amazon law approach fits within their sales tax nexus policy.” the article also discusses Colorado’s approach of requiring notification by remote vendors of the obligation to pay use tax, and the requirement that vendors report total annual sales by each purchaser to both the purchaser and the state.
All of the above tactics are in response to state budget shortfalls —- a whopping 46 states had shortfalls when adopting budgets for the current fiscal year.
Clearly, state support for passage of Main Street Fairness is growing. And, as we continue to point out, the adoption of MSFA would head off continued growth of a patchwork of state laws and enforcement efforts.
