New York, in its issuance of Important Notice N-19-1 on January 16, 2019, announced that its enumerated economic nexus provisions became effective immediately, requiring certain taxpayers with New York sales tax nexus potential to review their position and whether a filing obligation exists.
Though the South Dakota laws litigated in Wayfair provided that $100,000 or more in sales and/or 200 or more transactions would result in economic sales tax nexus, a standard mirrored by a host of states seeking to implement economic sales tax nexus, the Empire State has deviated in its interpretation.
Taxpayers that have no physical presence in New York, but meet the following requirements in the immediately preceding four sales tax quarters, are required to register and collect/remit sales tax if the business both:
Note that this differs from the generalized Wayfair threshold instituted by South Dakota in several ways:
Businesses that meet both prerequisites must register to collect and remit New York state and local sales tax.
The sales tax quarters for New York are also on a slightly different time frame than traditional annualized quarter used in many states, and in analyzing them retrospectively for the purposes of determining nexus would be, in reverse chronological order, the following 4 periods:
For those taxpayers meeting this threshold, registration, collection and remittance should begin immediately for the First Quarter of 2019.
Please reference using the link here for additional information and details: