Pet services booking site Rover could yield a sales tax bonanza for some states

Some states have tax laws that require sales tax to be collected on pet services, such as dog walking, pet sitting, pet grooming and more.  Those services with the help of a booking site Rover are being advertised online today with many in your community that you were not even aware.  How big is the

High Profile E-commerce Sellers

E-commerce has exploded and has literally transformed the retail landscape over the past 10 years.  Many e-commerce sites have grown with the Ebay auction website, Etsy for hand-crafted goods, and the e-commerce giant Amazon and its Amazon Marketplace.   Online e-commerce sellers with high gross sales (Based on transaction or review-based estimates) can prove to

Cash Economy / Taxable Services

Repair of tangible personal property is taxable in many states, and also is prone to cash-based transactions.  Therefore, there is a significant risk of a cash economy and state sales tax not being collected.  Many online websites have appeared where consumers can look for reputable service providers such as AngiesList, HomeAdvisor or Craigslist.  These websites

New logistics and fulfillment matching services have sales tax implications

The advent of sharing economy B2C services has spawned new B2B services for businesses that have a significant e-commerce operation.  For example, Darkstore is a company that offers a mobile app containing shipping and logistics providers in a database.  In fact their website advocates “same day service fulfillment” for e-commerce sites.  This has obvious implications

Click-Thru Affiliate Nexus

21 States have passed or pending Click-Thru or Affiliate Nexus legislation, and 12 states are considering it as of this writing.  The phenomenon is known as Click-Thru because it requires an out-of-state retailer to use an in-state marketing affiliate to promote his/her products through their e-commerce site.   Once customers have purchased product beyond $10,000 from that out-of-state retailer via the marketing affiliate, that retailer is now required to collect and remit sales tax to the state.  Now many state revenue agencies would call this the “Amazon Law” which compels the largest e-commerce retailer in the US to collect sales tax.  But there are many other high-grossing e-commerce sites with no retail presence that need to be added to this list as well:

  • Etsy (online hand-made arts and crafts site)
  • Ebay (online auction / retail site)
  • Groupon (Daily deals on products and services in major cities)
  • NewEgg (Electronics, computer parts, peripherals)
  • SteamPowered (Sells video games direct to consumer)
  • Overstock (Brand name surplus and over-produced items)
  • 6pm (name brand shoes)
  • BhPhotoVideo (photography, consumer electronics)

Many states also have specific language on what constitutes an affiliate solicitation.  For example, California requires an explicit “pushed” solicitation resulting in a transaction, such as an email.  Other states such as Illinois require merely a promotional coupon from that retailer.  Yet other states are unsure what scenarios constitute an affiliate solicitation.

That being said, technology exists that can help automatically harvest as many affiliates as possible in-state.  TaxCrawler can make the task of finding these sites very easy.  This leads the state agency to merely codify the rules around affiliate nexus, and let TaxCrawler do the digging on the internet.

Here are some examples of Affiliate Nexus that can be extracted.

Skycrawler – find non-registered personal property in your jurisdiction

Update: if you’re looking for the short term rental drop-hosting article, click here Montana has been known as a tax haven for individuals who wish to avoid paying the sales/use tax on a high ticket item such as a luxury vehicle or a motor home / RV. An estimated 122,000 RVs are registered to Montana

5 Reasons why 1099K data won’t fill in the tax gap

With oil prices down 50% since Fall 2014, state revenue agencies are seeking ways to overcome the shortfall without increasing taxes.  The simplest answer is improved enforcement: discovery, lead development, audit and collections are key aspects of that.  The IRS’s IRMF data by state payee from 1099K filings is a good start if you haven’t

Purseblog: Top 5 states for avoiding sales and use taxes while online shopping

Not everybody is interested in PurseBlog, but as a state revenue department, it pays to heed what the market is saying.  The members of this blog on high-fashion apparel and accessories are highly educated about making online purchases from out of state for the sole purpose of avoiding the sales tax.  On the PurseForum, fashionistas

Municipal Business Licensing & Revenue Enhancement

Municipal Business Licensing and Revenue departments can leverage online open source websites to identify businesses that would otherwise not be discovered operating in their locality.  Many businesses are aware of the power of advertising Local Services online, but they may not be aware of the taxation implications of a particular city or locality.  Revenue enhancement