New York announced that existing economic nexus provisions became effective June 21, 2018, as a result of the U.S. Supreme Court’s decision in South Dakota v. Wayfair. Due to this ruling, certain existing provisions in the New York Tax Law that define a sales tax vendor immediately became effective. Businesses that fall within this definition and make taxable sales in New York are required to collect and remit New York state and local sales tax.
Economic Nexus Threshold
A business that has no physical presence in New York, but meets the following requirements in the immediately preceding four sales tax quarters, is required to register and collect/remit sales tax:
- makes more than $300,000 in sales of tangible personal property delivered in New York, and
- makes more than 100 sales of tangible personal property delivered in New York.
Sales Tax Quarters
The sales tax quarters in New York are:
- March 1 through May 31,
- June 1 through August 31,
- September 1 through November 30, and
- December 1 through February 28/29.
Additional information on the economic nexus provisions is available on the Department of Taxation and Finance’s website.
Important Notice N-19-1, New York Department of Taxation and Finance, January 15, 2019, ¶409-409