August 30, 2021

Alaska looks to adopt state sales tax

Under H.B. 3006, Alaska would establish a 2% state sales and use tax. Alaska is one of five states that do not have a statewide sales and use tax although some Alaska municipalities currently impose one. The bill filed in the state House of Representatives would also grant the Department of Revenue the authority to enter into the Streamlined Sales and Use Tax Agreement currently utilized by 24 states.

May 27, 2021

Delaware Unclaimed Property Bills Pass the Senate

Delaware SB 103 and SB 104, introduced on April 14, 2021, appear to be on a fast track for adoption after passing the Senate with no amendments. Both Bills were assigned to the House Economic Development/Banking/Insurance & Commerce Committee, which has 14 days from the date of assignment to hold a hearing on the bills.

The bills affect a wide range of issues pertaining to 3rd party contract auditor fees, interest and penalties, the creation of a permanent expedited audit program and changes in dormancy periods for bonds and IRAs of deceased owners. The bills also expand the definition of property to include crypto currency, revises the audit lookback period, the period of limitation, the timeframe required to respond to a Secretary of State VDA notice, and the requirements to recover securities sold by the State. In addition, the bills authorize the State to send due diligence letters directly to potential owners, commence an audit for any reason, exclude interest and penalties imposed by other states from its indemnity provision, and bars records obtained in audits and VDAs from being used by the State in joint audits with other states without the holder’s consent. Finally, the bills allow the State to review records requested for completeness where said records do not identify property reportable to the State.

To understand the impact of these proposed changes on your audit, VDA or your decision to participate in a Delaware VDA, contact Sonia Walwyn at swalwyn@claruspartners.com. Watch for additional updates as the bills continue to move with lightning speed through Delaware’s legislative session.

May 18, 2021

Missouri sets to impose remote sales tax

The Missouri legislature has passed a bill imposing a requirement to collect sales tax on remote sellers and marketplace facilitators. The effective date of the legislation is extended to January 1, 2023 to allow the Department of Revenue time to establish a tax rate database and tax matrix. Businesses that made sales to Missouri in excess of $100,000 in the previous four calendar quarters must register and collect sales tax beginning January 1, 2023. Marketplace facilitators must collect sales tax on sales made using their platforms if they facilitate more than $100,000 in sales to Missouri customers.

May 4, 2021

Kansas passes economic nexus law

The Kansas legislature overrode the bill imposing a requirement on remote sellers and marketplace facilitators. The new legislation requires businesses that make sales to Kansas in excess of $100,000 in the current or previous calendar year to register and collect sales tax beginning July 1, 2021.

Marketplace facilitators must collect sales tax on sales made using their platforms if they facilitate more than $100,000 in sales to Kansas customers. For sellers that exceeded the $100,000 threshold in 2020, the legislation specifically provides that the seller is not required to collect tax on sales that occurred prior to July 1, 2021.

April 19, 2021

Florida governor signs nexus bill into law

Gov. Ron DeSantis signed the bill imposing the requirement to collect sales tax on remote sellers and marketplace facilitators. Businesses that made sales to Florida in excess of $100,000 in the previous calendar year must register and collect sales tax beginning July 1, 2021. Marketplace facilitators must collect sales tax on sales made using their platforms if they facilitate more than $100,000 in sales to Florida customers.

The legislation also reduces the tax rate imposed on the rental or license of certain types of real property. The state rate will be reduced from the current 5.5% to 2.0%. Local tax rates will continue to apply.

April 16, 2021

Kansas remote seller sales tax legislation vetoed

Kansas Governor Laura Kelly vetoed legislation that would have implemented remote seller and marketplace facilitator sales tax collection requirements in the state. Kelly objected to the income tax cuts contained in the bill. The leaders of the House and Senate have indicated they will attempt to override the governor’s veto when they return on May 3. The bill passed the Senate with more than the two-thirds supermajority required to override the veto. However, the vote in the House was three votes short of the required supermajority.

April 6, 2021

Kansas passes new sales tax legislation

The Kansas legislature has passed a bill imposing a requirement to collect sales tax on remote sellers and marketplace facilitators. The governor is expected to sign the bill. Businesses that make sales to Kansas in excess of $100,000 in the current or previous calendar year must register and collect sales tax beginning July 1, 2021. Marketplace facilitators must collect sales tax on sales made using their platforms if they facilitate more than $100,000 in sales to Kansas customers.

Prior to this legislation the Kansas Department of Revenue and the Kansas Attorney General disagreed on the application of the United States Supreme Court’s 2018 decision in Wayfair. The Secretary of Revenue asserted that one sale of any amount created a filing obligation in Kansas. The Attorney General maintained that this position did not comply with the Wayfair decision and was unenforceable. This legislation clarifies the situation. For sellers that exceeded the $100,000 threshold in 2020, the legislation specifically provides that the seller is not required to collect tax on sales that occur prior to July 1, 2021.

June 3, 2021

New Round of Delaware VDA Notices

Delaware’s Secretary of State recently sent out notices to companies inviting them to participate in the State’s Voluntary Disclosure Program (VDA). Companies have 60 days to elect whether or not to participate in the VDA or likely be subject to audit by one of the State’s contract audit firms.

All companies, whether incorporated in Delaware, doing business in Delaware or not doing business in the State, should check with their C-Suite to ensure that these notices, usually addressed to the CFO, gets to the right group for review to ensure that the deadline to respond is not missed and the company is not targeted for audit.

If you receive a notice, Clarus Partners offers a full suite of unclaimed property services and can help you with the decision to participate as well as an unclaimed property VDA or audit. Contact Sonia Walwyn at swalwyn@claruspartners.com.

May 27, 2021

Delaware Unclaimed Property Bills Pass the Senate

Delaware SB 103 and SB 104, introduced on April 14, 2021, appear to be on a fast track for adoption after passing the Senate with no amendments. Both Bills were assigned to the House Economic Development/Banking/Insurance & Commerce Committee, which has 14 days from the date of assignment to hold a hearing on the bills.

The bills affect a wide range of issues pertaining to 3rd party contract auditor fees, interest and penalties, the creation of a permanent expedited audit program and changes in dormancy periods for bonds and IRAs of deceased owners. The bills also expand the definition of property to include crypto currency, revises the audit lookback period, the period of limitation, the timeframe required to respond to a Secretary of State VDA notice, and the requirements to recover securities sold by the State. In addition, the bills authorize the State to send due diligence letters directly to potential owners, commence an audit for any reason, exclude interest and penalties imposed by other states from its indemnity provision, and bars records obtained in audits and VDAs from being used by the State in joint audits with other states without the holder’s consent. Finally, the bills allow the State to review records requested for completeness where said records do not identify property reportable to the State.

To understand the impact of these proposed changes on your audit, VDA or your decision to participate in a Delaware VDA, contact Sonia Walwyn at swalwyn@claruspartners.com. Watch for additional updates as the bills continue to move with lightning speed through Delaware’s legislative session.

May 18, 2021

Missouri sets to impose remote sales tax

The Missouri legislature has passed a bill imposing a requirement to collect sales tax on remote sellers and marketplace facilitators. The effective date of the legislation is extended to January 1, 2023 to allow the Department of Revenue time to establish a tax rate database and tax matrix. Businesses that made sales to Missouri in excess of $100,000 in the previous four calendar quarters must register and collect sales tax beginning January 1, 2023. Marketplace facilitators must collect sales tax on sales made using their platforms if they facilitate more than $100,000 in sales to Missouri customers.

May 4, 2021

Kansas passes economic nexus law

The Kansas legislature overrode the bill imposing a requirement on remote sellers and marketplace facilitators. The new legislation requires businesses that make sales to Kansas in excess of $100,000 in the current or previous calendar year to register and collect sales tax beginning July 1, 2021.

Marketplace facilitators must collect sales tax on sales made using their platforms if they facilitate more than $100,000 in sales to Kansas customers. For sellers that exceeded the $100,000 threshold in 2020, the legislation specifically provides that the seller is not required to collect tax on sales that occurred prior to July 1, 2021.

April 19, 2021

Florida governor signs nexus bill into law

Gov. Ron DeSantis signed the bill imposing the requirement to collect sales tax on remote sellers and marketplace facilitators. Businesses that made sales to Florida in excess of $100,000 in the previous calendar year must register and collect sales tax beginning July 1, 2021. Marketplace facilitators must collect sales tax on sales made using their platforms if they facilitate more than $100,000 in sales to Florida customers.

The legislation also reduces the tax rate imposed on the rental or license of certain types of real property. The state rate will be reduced from the current 5.5% to 2.0%. Local tax rates will continue to apply.

April 16, 2021

Kansas remote seller sales tax legislation vetoed

Kansas Governor Laura Kelly vetoed legislation that would have implemented remote seller and marketplace facilitator sales tax collection requirements in the state. Kelly objected to the income tax cuts contained in the bill. The leaders of the House and Senate have indicated they will attempt to override the governor’s veto when they return on May 3. The bill passed the Senate with more than the two-thirds supermajority required to override the veto. However, the vote in the House was three votes short of the required supermajority.

April 6, 2021

Kansas passes new sales tax legislation

The Kansas legislature has passed a bill imposing a requirement to collect sales tax on remote sellers and marketplace facilitators. The governor is expected to sign the bill. Businesses that make sales to Kansas in excess of $100,000 in the current or previous calendar year must register and collect sales tax beginning July 1, 2021. Marketplace facilitators must collect sales tax on sales made using their platforms if they facilitate more than $100,000 in sales to Kansas customers.

Prior to this legislation the Kansas Department of Revenue and the Kansas Attorney General disagreed on the application of the United States Supreme Court’s 2018 decision in Wayfair. The Secretary of Revenue asserted that one sale of any amount created a filing obligation in Kansas. The Attorney General maintained that this position did not comply with the Wayfair decision and was unenforceable. This legislation clarifies the situation. For sellers that exceeded the $100,000 threshold in 2020, the legislation specifically provides that the seller is not required to collect tax on sales that occur prior to July 1, 2021.