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The DMA Way

Your Corporate Tax Blog

The tax world is an ever-changing environment, making it challenging to stay up to date. That's why we've decided to help by providing a little direction. Welcome to The DMA Way — your exclusive inside look on the latest industry trends with tax updates from across North America.


Is Your Company Prepared for the Economic Nexus Changes Beginning on October 1st?

by DMA Staff | Sep 21, 2018

The recent Wayfair decision has been a cause of confusion and concern for remote sellers as they try to understand what the impact to their business will be. As the effects of this decision begin to emerge, tax and accounting professionals across the country are struggling to determine the methods and processes needed to ensure their companies are in compliance with a large list of state nexus changes that will affect the way they collect and remit sales tax. To be clear, online retailers as well as brick and mortar retailers with “send sales” will be impacted, and now is the time for businesses to prepare.

While this is a constantly-evolving topic as state legislatures meet over the next year, there are currently several states with October 1 implementation dates that retailers should be aware of. Unless otherwise noted, these states will follow the “standard” $100K or 200 transactions threshold.

  • Alabama - Administrative rule in place; legislative action needed.
  • Illinois
  • Indiana
  • Kentucky
  • Maryland - Comptroller’s emergency order; final order will go through normal rulemaking procedure before March, 2019.
  • Michigan - Treasury will waive failure to file and deficiency penalties for returns and payments due prior to December 31, 2018, so long as the taxpayer incurring those penalties has nexus solely due to RAB 2018-16 and Wayfair; interest will not be waived.
  • Minnesota
  • North Dakota
  • New Jersey
  • Wisconsin - Emergency rule in place; legislative action needed. Threshold of $100,000/ or 200 transactions.

In addition, the following are states to watch:

  • South Dakota’s law will become effective 11/01/2018
  • Arkansas has announced that it is considering adopting a $100K / 200 transaction threshold
  • Texas is beginning their rulemaking process, with an anticipated effective date of July or October 2019
  • Nevada is holding hearings to discuss the adoption of economic nexus

In an effort to educate tax and accounting professionals on these changes, DMA – DuCharme, McMillen & Associates will hold a webinar on October 3rd at 2 pm EST on CPAAcademy.org. This webinar is free to attend, and CPE credit is available. Attendees of will be provided with a useful, up-to-date map showing enacted and proposed legislation for the states. This webinar will discuss:

  • What types of companies are impacted by the ruling
  • What “economic nexus” means
  • How physical presence plays into the equation
  • When and how remote sellers should determine whether they have nexus in each state
  • Types of nexus such as Economic Nexus, Cookie Nexus and Marketplace Nexus
  • Managing threshholds
  • State changes and effective dates
  • Additional considerations

Register for our free Webinar on October 30 at 2 pm EDT

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