March 6, 2019 – In Notice N-19-1 the New York State Department of Taxation and Finance set out their rules for the imposition of sales tax collection on businesses that have no physical presence in the state.

This notice is in response to the United States Supreme Court’s June 21, 2018 ruling in South Dakota v. Wayfair that businesses could be required by states to collect sales tax even if they had no physical presence in the state.  (Read our prior in-depth blogs about the Wayfair case and the Quill case.)

Pursuant to the Notice, New York now takes the position that if a business that has no physical presence in New York it may still be required to collect sales tax.

>> If a business has both made more than $300,000 in sales of tangible personal property delivered in New York and conducted more than 100 sales of tangible personal property delivered in the New York in the immediately preceding four sales tax quarters that business is now required to register for, collect and timely remit the applicable state and local sales tax.

For a printable copy of this article, please click here.

For more information, please contact Robert Pollock at rpollock@dopkins.com.

About the Author

Robert Pollock CPA, CVA

Bob is Chair of Dopkins Tax Advisory Group. His practice has covered many industries, with a primary focus on tax and financial matters encountered by closely held business operations and their owners. He has significant experience dealing with federal corporate income, federal personal income, state and local income, estate and gift and sales tax matters. He has also prepared business valuations for estate, gift and income tax purposes and for clients who are actually engaged in buying or selling a business. He has worked extensively in the merger and acquisition arena with closely held entities.