Can you believe 2021 is almost over? Neither can we. While 2021 was somewhat calmer than the tumultuous year that was 2020, there were still plenty of important new state and business sales tax legislation and changes. While we do share updates on our blog regularly, in this article we want to provide you with an all-in-one roundup of a few important tax updates from this past year.
Missouri And Florida Implement Economic Nexus
If you follow our blog, you know that we frequently share updates regarding economic nexus as a result of the June 2018 U.S. Supreme Court ruling in South Dakota v. Wayfair, Inc.
On April 19, 2021, Florida’s governor signed S.B. 50 into law, making Florida one of the last states to adopt economic nexus for sales tax.
In June 2021, Missouri became the final state with a statewide sales tax to enact economic nexus legislation when Gov. Mike Parson signed SB 153 & 97.
How Else Has Economic Nexus Legislation Been Updated?
Several states have either reduced or removed the sales or transaction thresholds for triggering nexus in their states within the last year (or have otherwise expanded the nexus net), including Arizona, Illinois and Tennessee. It’s possible that these changes in nexus helped to increase states revenue streams after losses in 2020 due to the pandemic. Even a little tweak can have significant ramifications!
SaaS Taxation Legislation Changes
We routinely share SaaS taxation updates in our weekly blog articles, as it is a fairly new topic and an issue we help many of our clients with.
In 2021, Maryland began to tax SaaS and digital products. Up until March 14, when House Bill (HB) 932 was enacted, digital products in the state were not subject to sales and use taxation.
Now, e-books, songs and movies along with SaaS are subject to these taxes.
Taxation Of Remote Workers
COVID-19 completely changed the way that we work, and for a lot of people working from home has become their new reality. As a result, the taxation of remote workers has changed in the last two years. Typically, remote workers that live in a different state than where they work can create nexus (the amount of contact from a company needed to be obligated to collect sales tax in that state).
Throughout the pandemic, however, many states have chosen not to assert nexus on the companies whose employees were working remotely due to the pandemic.
Check out our previous blog article on the subject to see some of the specific updates that happened in 2021 regarding taxation of remote workers.
Do You Need Help With Your Sales Tax Compliance?
Now is the time to get ahead with your sales tax compliance. Since state tax legislation is constantly changing, working with an experienced team of tax consultants like Miles Consulting Group is a great way to ensure you are meeting all of your sales tax obligations. If you have questions about your tax liability or any other state sales tax compliance questions, please contact us today. We’re happy to clarify any multi-state tax issues you’re trying to navigate.
