Since we are all over Oklahoma today, why not word about a new sales tax compliance wrinkle for vendors who sell to customers in the Sooner state.
There are a lot of sales tax related items that this monster legislation touches on, but perhaps the most timely issue relates to the so-called "Amazon Tax" controversy. We have posted and posted about the on-going efforts of states to enforce collection of sales taxes by out of state vendors (hence, the imprecise term "internet tax" has developed). A few states have attempted to dramatically expand the definition of nexus so as to include out of state vendors, like New York or North Carolina.
Other states have taken a different tack. Well, actually Colorado is the only one to have actually gotten the regs off the ground, but California has a similar bill pending.
So what is the alternative to attempts to expand nexus beyond its generally understood definition? Noticing, thats what! See the newest Oklahoma law:
"SECTION 2. NEW LAW A new section of
law to be codified in the Oklahoma Statutes
as Section 1406.1 of Title 68, unless there
is created a duplication in numbering, reads
as follows:
A. Each retailer or vendor making sales of
tangible personal property from a place of
business outside this state for use in this
state that is not required to collect use
tax, shall provide notification on its
retail Internet website or retail catalog
and invoices provided to its customers that
use tax is imposed and must be paid by the
purchaser, unless otherwise exempt, on the
storage, use, or other consumption of the
tangible personal property in this state.
The notification shall be readily visible.
It is further provided that no retailer
shall advertise on its retail Internet
website or retail catalog that there is no
tax due on purchases made from the retailer
for use in this state."
So, the lawmakers in Oklahoma made notice requirements law, backed off the Colorado reporting requirements, but then added a twist of advertising restrictions, just to keep all you vendors on your compliance toes.
The take away? The new law presents a unique, if not onerous, sales tax compliance challenge for vendors who sell in Oklahoma, but do not collect tax there.
Big picture, the new law's notice requirements, as well as the law's amnesty for vendors, (maybe we'll get to that on a later post) reflects the current trend by states to 'try anything' to encourage sales tax collections by out of state vendors.
There are a lot of sales tax related items that this monster legislation touches on, but perhaps the most timely issue relates to the so-called "Amazon Tax" controversy. We have posted and posted about the on-going efforts of states to enforce collection of sales taxes by out of state vendors (hence, the imprecise term "internet tax" has developed). A few states have attempted to dramatically expand the definition of nexus so as to include out of state vendors, like New York or North Carolina.
Other states have taken a different tack. Well, actually Colorado is the only one to have actually gotten the regs off the ground, but California has a similar bill pending.
So what is the alternative to attempts to expand nexus beyond its generally understood definition? Noticing, thats what! See the newest Oklahoma law:
"SECTION 2. NEW LAW A new section of
law to be codified in the Oklahoma Statutes
as Section 1406.1 of Title 68, unless there
is created a duplication in numbering, reads
as follows:
A. Each retailer or vendor making sales of
tangible personal property from a place of
business outside this state for use in this
state that is not required to collect use
tax, shall provide notification on its
retail Internet website or retail catalog
and invoices provided to its customers that
use tax is imposed and must be paid by the
purchaser, unless otherwise exempt, on the
storage, use, or other consumption of the
tangible personal property in this state.
The notification shall be readily visible.
It is further provided that no retailer
shall advertise on its retail Internet
website or retail catalog that there is no
tax due on purchases made from the retailer
for use in this state."
So, the lawmakers in Oklahoma made notice requirements law, backed off the Colorado reporting requirements, but then added a twist of advertising restrictions, just to keep all you vendors on your compliance toes.
The take away? The new law presents a unique, if not onerous, sales tax compliance challenge for vendors who sell in Oklahoma, but do not collect tax there.
Big picture, the new law's notice requirements, as well as the law's amnesty for vendors, (maybe we'll get to that on a later post) reflects the current trend by states to 'try anything' to encourage sales tax collections by out of state vendors.
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Comments for Oklahoma Enacts Colorado-ish Use Tax Noticing Requirement.