2017 Mid-Year Sales Tax Changes

Repost from Avalara

Dealing with change is standard operating procedure for many companies: employees leave and are hired; new products are introduced and old ones phased out; there are booms, and there are busts. On top of all that, companies need to account for sales and use tax changes. Significant changes in rates, regulations, and product taxability often take effect July 1, which is the start of a new fiscal year in all but a few states.

At the end of 2016, we shared many of the sales tax changes set to occur January 1, 2017. These included state sales tax rate changes in California and New Jersey, the expansion of sales tax to certain services in North Carolina, the prohibition of taxing more services in Missouri, and a bevy of recently enacted soda taxes and tampon tax exemptions. At mid-year, we’re seeing a few propositions that signify a dramatic shift in online sales tax revenue.

States want to collect more tax revenue from remote sales

Perhaps the most notable trend of 2017 is states’ push to obtain tax revenue from remote sales. This isn’t new. States have been working to tax out-of-state sellers for years, but their efforts have been hampered by Quill Corp. v. North Dakota, 504 U.S. 298 (1992) — the landmark Supreme Court ruling that a state can only tax businesses physically located within its borders.

In recent years, states have found creative ways to work around the physical presence precedent upheld by Quill. They’re taxing businesses with ties to in-state affiliates and those that generate a certain amount of business through links on in-state websites (commonly known as click-through nexus). Increasingly, they’re also taxing companies with a certain amount of economic activity in the state (economic nexus). Unfortunately for states in need of additional sales tax revenue, these affiliate, click-through, and economic nexus laws are difficult for states to enforce.

Therefore, many states are looking to different and more aggressive approaches. Two methods, in particular, have been gaining steam this year: use tax notification and reporting requirements, and taxes on online marketplace providers such as Amazon and eBay.

Use tax notification and reporting requirements

Colorado paved the way for states to impose use tax notification and reporting requirements on non-collecting out-of-state sellers. After spending years stuck in court, its policy takes effect July 1 — the same date a similar policy starts in Puerto Rico. Vermont recently passed one and made it effective retroactively, on January 1, 2017. Other states, including Pennsylvania and Texas, are considering use tax notification and reporting measures.

Sending annual reports of consumer purchase activity to consumers and state tax authorities is more work for remote retailers, and Colorado and the other states could be using their policies as a back-door approach to getting out-of-state companies to register and collect. Even if companies choose to not take that route, use tax reporting should help states increase their use tax collections.

sales tax

Taxing online marketplaces

Minnesota is the first state to enact a tax on marketplace providers. HF 1 will take effect at the earlier of July 1, 2019, or when the Supreme Court modifies its decision in Quill — though the effective date could change if Congress passes legislation allowing states to tax remote sales.

North Carolina, Texas, Washington, and a number of other states are also interested in taxing marketplace providers, and their efforts are likely to continue or resume as 2017 wanes. But not all agree it’s a good idea: New York lawmakers blocked Governor Andrew Cuomo’s attempt to tax them earlier this year.

Congress could tackle online sales tax

Federal lawmakers are much preoccupied with tax reform and repealing or revamping the Affordable Care Act. Allowing states to tax remote sales transactions, or definitively preventing them from doing so, seems to be low on their list of priorities. However, we’ve learned to expect the unexpected from Washington, so a federal solution to the problem of untaxed remote sales should not be entirely ruled out.

Two bills have been introduced that would authorize states to tax certain interstate sales: the Marketplace Fairness Act of 2017 and the Remote Transactions Parity Act of 2017.

A bill that would codify the physical presence standard set by Quill and further limit states’ ability to tax interstate sales has also been introduced: the No Representation Without Representation Act of 2017.

Other sales tax changes

Many of the trends seen at the start of the year are continuing as 2017 progresses. Florida has enacted a tampon tax exemption, Seattle a soda tax. Tennessee is lowering the state sales tax rate on food and food ingredients, there are calls to add a statewide sales tax in Alaska, and although he failed to achieve it this session, Governor Jim Justice has been pushing to raise the state sales tax rate in West Virginia. The taxation of services — including online music and movie streaming services — remains a hot and hotly contested topic. And, as always, a plethora of local sales tax rate changes take effect at the start of each new quarter.

Don’t be lulled into complacency during the dog days of summer: There’s a lot happening in the world of sales tax right now. Staying on top of these and other changes will allow you to prepare for them. Download Avalara’s 2017 Sales Tax Changes Mid-Year Update to learn more.

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SBS Group and Redmond Channel Partner to Co-host Webcast: “Why the Channel Needs to Embrace Dynamics 365 to Stay Relevant”

Redmond Channel Partner Editor-in-chief Scott Bekker to moderate a presentation on why partners should add Microsoft Dynamics 365 to their solution portfolios.

SBS Group, a leading information technology services and consulting firm, has announced they will be presenting a webcast with Scott Bekker of Redmond Channel Partner to help Value Added Resellers (VARs) and Managed Service Providers (MSP’s) understand how changes in the business environment for Microsoft partners has made the addition of a Microsoft Dynamics 365 practice a crucial element for continued success. The webcast will take place Tuesday, August 15th at 12 p.m. ET.

Entitled “Why the Channel Needs to Embrace Dynamics 365 to Stay Relevant,” the webcast will also highlight SBS Group’s Stratos Cloud Alliance, a new program for partners looking to expand their breadth of solutions while minimizing investment. Attendees will be introduced to Stratos Cloud Alliance’s turnkey initiative, Stratos Dynamics Digital Transformation (S2DT), a program to help partners build a Microsoft Dynamics 365 practice in 30 days.

“Microsoft Dynamics 365, and Microsoft’s recent partner management changes, has shattered the historic divide between Dynamics partners and the rest of the channel. As cloud services continue to dominate the market, the need for channel partners to sell and deliver on business value versus technical expertise will accelerate,” says Bekker. “Microsoft is working with a new indirect provider, the Stratos Cloud Alliance, to assist partners interested in adding Dynamics 365 to differentiate, increase customer stickiness, and open new revenue streams.”

Bekker will be joined by SBS presenters Jim Bowman and Scott May. Bowman is the Chief Executive Officer at SBS Group and May is the Director of Channel Programs, Stratos Cloud Alliance at SBS Group.

Registration for the webcast is free. To register, visit https://rcpmag.com/webcasts/2017/07/sbs-group-aug15.aspx?partnerref=SBS

About SBS Group

SBS Group is a Microsoft Master VAR and Indirect Cloud Solutions Provider (CSP) specializing in Microsoft Dynamics solutions and services for companies of all sizes. With more than 3,000 active customers served by over 300 employees across 40 locations in North America, SBS Group is a recognized leader in cloud ERP, CRM, productivity and business intelligence solutions. We simplify the cloud experience and help our customers realize business value faster with SBS Group AXIO solutions for Dynamics 365 and our streamlined RightPath approach. SBS Group is headquartered in Edison, NJ and has been a recognized leader in Microsoft business solutions for over 30 years. http://www.sbsgroupusa.com

To learn more about the Stratos Cloud Alliance, visit http://www.dynamics365partner.com.

About Redmond Channel Partner

Redmond Channel Partner (RCP) is an independent advocate for Microsoft partners, including solution providers, managed services providers (MSPs), hosters, cloud partners and independent software vendors (ISVs). https://rcpmag.com.


To read the full release, click here.

SBS Group Named to Accounting Today’s 2017 Top 100 VARS

SBS Group, an industry leading information technology and consulting company, is ranked #9 on Accounting Today’s 2017 VAR 100.

SBS Group, an innovative IT services and consulting company, is pleased to announce its ranking on Accounting Today’s 2017 VAR 100 list. SBS Group was placed at #9 on Accounting Today’s list among some of the country’s leading value added resellers (VARs) of accounting and ERP technology.

Placement on the list can be attributed to SBS Group’s commitment to evolution and expansion, not only in accounting and ERP solutions, but also in the business intelligence, customer relationship management (CRM) and cloud technology spaces. SBS Group continues to add more solutions to their cloud portfolio and cloud marketplace (shop.sbsgroupusa.com) and make investments to expand their business intelligence and CRM practices.

“Being recognized by Accounting Today is a significant accomplishment for our team and reflects the continued evolution of SBS Group to remain relevant to our client’s needs,” said James Bowman. “We remain energized and committed to delivering solutions that drive our client’s business further.”

Accounting Today’s 2017 VAR 100 list is an annual report developed to rank the top technology resellers in the accounting and ERP space. The website is a leading provider of online news for the tax and accounting community. Accounting Today provides breaking news, in-depth features and editorial analysis.

Accounting Today’s 2017 VAR 100 is available for download on http://www.accountingtoday.com.

About SBS Group
SBS Group is a Microsoft Master VAR and Indirect Cloud Solutions Provider (CSP) specializing in Microsoft Dynamics solutions and services for companies of all sizes. With more than 3,000 active customers served by over 300 employees across 40 locations in North America, SBS Group is a recognized leader in cloud ERP, CRM, productivity and business intelligence solutions. We simplify the cloud experience and help our customers realize business value faster with SBS Group AXIO solutions for Dynamics 365 and our streamlined RightPath approach. SBS Group is headquartered in Edison, NJ and has been a recognized leader in Microsoft business solutions for over 30 years. http://www.sbsgroupusa.com.


To read the full release, click here.

New Video Release: AP Invoice Automation with Dynamics 365 for Finance and Operations (4 min 16 secs)

Research and common sense clearly demonstrate that more automation means better productivity. Analysts at Aberdeen have reported that highly automated organizations actively manage more than 90 percent of their spending. Contrast this with manual operations which have less than 25 percent of their spending under management. Beyond the impact on the productivity of the accounting function, invoice automation enables executives to make smarter decisions about their company’s costs and forecasts and gives the organization confidence that invoices are paid on time, recorded accurately, and never misplaced or duplicated. Bottom line, invoice automation can positively impact the organization from the front line to the C-suite.

With Microsoft Dynamics 365 Finance and Operations, Business Edition, there is no need to invest in complex or expensive integration to implement an invoice automation solution. You can have your paper documents converted to electronic invoices using an OCR (Optical Character Recognition) service, thereby avoiding tedious, error-prone and costly manual typing and leverage built-in process automation capabilities of Dynamics 365. Best of all, the OCR service (provided by Lexmark) is available as a subscription cloud service through the Microsoft AppSource and requires no installation or integration. Dynamics 365, of course, is also an on-demand subscription service available through Microsoft Cloud Solution providers like SBS Group.

Watch as a Dynamics 365 expert demonstrates the invoice automation capabilities of Dynamics 365 Finance and Operations, Business Edition.

SBS Group Recognized as 2017 Microsoft Dynamics 365 East Region Partner of the Year

Honored by Microsoft for sales achievement and innovation in Cloud solutions.

SBS Group, a leading information technology services and consulting firm, was awarded the 2017 Microsoft Dynamics 365 Partner of the Year in the East Region. The company was honored among a field of top Microsoft partners for demonstrating excellence in innovation and implementation of customer solutions based on Microsoft’s cloud technology.

“We are pleased to be recognized for our commitment to and innovation on Microsoft Dynamics 365,” said James R. Bowman, SBS Group’s President and CEO, “We were pioneers in the space, being among the first group of partners publishing solutions on Microsoft AppSource and launching the first online marketplace specializing in Dynamics 365. We plan to continue to invest and introduce more exciting, new solutions in the market.”

The Regional Partner of the Year Awards were announced last week during Microsoft’s Worldwide Partner Conference, Inspire 2017, in Washington, DC. The awards recognize the extraordinary contributions of Microsoft partners serving small, mid-market and enterprise commercial customers throughout the past fiscal year.

About SBS Group

SBS Group is a Microsoft Master VAR and Indirect Cloud Solutions Provider (CSP) specializing in Microsoft Dynamics solutions and services for companies of all sizes. With more than 3,000 active customers served by over 300 employees across 40 locations in North America, SBS Group is a recognized leader in cloud ERP, CRM, productivity and business intelligence solutions. We simplify the cloud experience and help our customers realize business value faster with SBS Group AXIO solutions for Dynamics 365 and our streamlined RightPath approach. SBS Group is headquartered in Edison, NJ and has been a recognized leader in Microsoft business solutions for over 30 years. http://www.sbsgroupusa.com.


To read the full release, click here.

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