Economic Nexus Updates for Sales Tax
Maine has eliminated its 200 transaction requirement for economic nexus in the state. Effective January 1, 2022, a person making sales of tangible personal property or taxable services who is not located in Maine is required to register, collect and remit sales tax on sales if the person’s total gross sales into the state exceeds $100,000 in the previous or current calendar year.
Colorado Destination Sourcing
Beginning February 1, 2022, all Colorado retailers must apply sales tax based on where goods are delivered or services are provided (destination sourcing). To tax at destination, the best practice is to turn on Shipping under Sales in overall Settings and complete the Shipping to/Service Location field on the invoice.
For sales to Colorado Home Rule, jurisdictions check with the local agency before turning on that Home Rule location to collect and report tax, unless you are already registered with that Home Rule locality. See Colorado DR 1002 for the most recent listing of Colorado Home Rule locals.
To apply tax based on your Colorado store location, for example when sales are completed at the store, simply exclude Shipping/Service location information from the invoice. For more information, check-out Colorado’s Origin to Destination Sourcing Guide, last revised September 23, 2021.
Effective January 1, 2022, Kentucky farmers must provide their vendors with a new agriculture exemption number when claiming an exemption from tax on qualifying agricultural products. For more information, please see the Kentucky notice found HERE.