Out-of-State Sales Now Taxable in Some States

Organic seed producers and companies making out-of-state sales may be impacted by the recent decision by the Supreme Court of the United States on South Dakota v. Wayfair, Inc. The decision allows states to charge sales tax on out-of-state purchases, even if the seller does not have a physical presence in the taxing state. Some states have begun requiring out-of-state businesses to collect and remit sales tax on purchases, while others are setting or have set effective implementation dates. 
 
Each state is implementing different criteria for taxable sales: some require sales tax if the seller does more than 100 transactions to that state or if the seller’s transactions exceed $10,000. Sellers are required to track, charge, and remit sales tax for each individual taxing district in the applicable states.
 
Opponents say that the collection and remittance of sales tax on items will be difficult and that computer software to issue the varying sales tax rates will raise prices for consumers. Opponents are also advocating for a bipartisan bill in the House of Representatives: H.R. 8624 – the Online Sales Simplicity and Small Business Relief Act. H.R. 8624 would prohibit states from retroactively imposing sales tax on remote sellers and push the implementation date for remote seller tax collection until January 1, 2019. 
 
For more information about remote seller taxation, contact your state taxing agency. Californians can contact the California State Board of Equalization at 1-800-400-7115. 

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