- In 2018, the US Supreme Court ruled that states can impose sales tax collection requirements on remote sellers without physical presence
- Some states have simplified their tax rules, while others have not
- Senator Maggie Hassan plans to introduce legislation in 2025 to impose simplification requirements on states
- The proposal, called the “Lowering Costs for Small Business Act,” includes prohibiting tax obligations on smaller sellers and establishing baseline requirements
- Requirements include prohibiting collection on companies with less than $10,000,000 in total remote sales, banning retroactive tax collection, and requiring states to certify and contract with tax automation providers
- The proposal also includes adopting uniform definitions for products and key terms, as well as standard rules for various aspects of sales tax collection
- Many non-SST states do not meet these requirements, with only Pennsylvania offering free services to remote sellers
- The ban on retroactive taxation addresses states that have pursued claims against remote sellers for sales before June 21, 2018
Source: sovos.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
