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New Tax Laws for Online Retailers Selling into Mississippi
September 6, 2018 / 4 minute read / By Michele Salerno
Blog
The United States Supreme Court issued its decision in South Dakota v. Wayfair, Inc. on June 21, 2018. This decision struck down the requirement that a vendor must have “physical presence” in a state to be subject to state sales and use tax collection requirements
Mississippi’s rule took effect December 1, 2017, but has never been actively enforced because of the physical presence rule. Now that the Supreme Court has repealed the physical presence limitation, the Mississippi Department of Revenue has issued guidance for online or remote sellers who have economic nexus with the state.
Sellers who have no physical presence in Mississippi but who purposefully and systematically exploit the Mississippi market and meet or exceed the $250,000 small seller exception during the prior 12-month period must register with the Department of Revenue by August 31, 2018, and begin collection of Mississippi use tax for sales into the state made on or after September 1, 2018 (Mississippi Code Ann. Section 27-67-4(2)(e)).
There are different ways of exploiting the Mississippi market, including, but not limited to:
Sellers with a substantial economic presence in Mississippi must state the tax separately from the sales price on invoices, and account for the tax separately on sales receipts.
In addition to Mississippi and South Dakota, the following states have adopted economic nexus policies: Alabama, Connecticut, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Nebraska, New Jersey, North Carolina, North Dakota, Tennessee, Utah, Washington, Wisconsin, and Wyoming.
Many more states have affiliate or click-through nexus laws, including California, New York, and Texas.
Sales tax automation software can be integrated into your retail point of sale or online ecommerce software solutions to make managing your sales tax compliance and calculations easy. With automation software you can rest assured you’ll collect the right tax for each state where you have nexus. Our Celerant POS software and ecommerce solutions integrate with Avalara for sales tax compliance. For more information, please visit www.celerant.com/partners/avalara/.
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