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Cookies Can Now Create Sales Tax Nexus

Posted by Brian Greer on Fri, Aug 04, 2017 @ 11:07 AM

If your company engages in e-commerce, you have exposure to state sales tax nexus laws in any location where you do business.  Nexus rules change frequently.  Here is the latest news to keep you informed.

Massachusetts Proposes Internet Vendor Sales Taxes

The Massachusetts Department of Revenue proposed new regulations on July 28 that would require businesses engaged in internet commerce to collect sales taxes on customers in the state.  Massachusetts is the latest in a series of states attempting to increase revenue by stretching the boundaries of sales tax nexus.  In the proposed regulation, the Department of Revenue states that the physical presence required to create nexus occurs when a company owns or uses software on customer computers in Massachusetts, including internet cookies.  Under the new rule, vendors are responsible for collecting taxes if they make more than $500,000 in sales to state residents and they participated in more than 100 transactions.  If approved, the new proposal starts October first.  This proposal is different than what we've seen in Alabama and South Dakota for example - which are direct attacks on the Quill physical presence standard.

States are constantly changing and updating nexus regulations.  Help your business stay prepared.  Check back with us frequently for the latest nexus updates.

 

Topics: sales tax nexus, internet sales tax, ecommerce, Massachusetts sales tax