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States Exploring Bills on Daily Remittance of Sales/Use Tax

by DMA Staff | Apr 01, 2019
United States

In prior newsletters, we posted information on states proposing that businesses remit sales tax daily, as well as bills that offer support to the initiative on various levels. Connecticut and Massachusetts have revisited this topic for the past three state legislative sessions. Missouri is now taking on the topic as well in 2019.

Connecticut
HB 5891 would require that retailers use technology at the point of sale which will automate the collection and remittance of tax. There has been no movement on this bill since February 1.

Massachusetts
As part of the budget proposal, Governor Baker altered the drive for daily remittance with Outside Section 26. Section 26 would require preliminary remittance of sales tax. It is possible that Massachusetts will begin requiring a prepayment.

Missouri
In an effort to collect online sales tax, HB 648 proposes to require sellers to use a payment processor to collect the sales tax and remit it to the state. A payment processor is defined as a credit card company or other similar company the purchaser uses for direct payment to the seller. The bill was filed January 23rd and has little movement.

New York
The Empire state has introduced A 04887 which would require sellers with appropriate nexus for sales tax in the state to establish an account for sales tax to be directly deposited and provides the state full access to the collected tax. If the seller collects tax through credit or debit cards, the account can be a separate escrow account with an approved credit card processing company (ACCPC). If the seller does not collect payment via credit or debit cards, then an account may be established through an approved banking institution. The bill was referred to the Ways and Means Committee in February and has not seen movement since.

This article is part of DMA's Completely Compliance quarterly newsletter. Stay up to date with sales and use tax news, events, and information by signing up for the newsletter here.