News Provided by Visual Next Partner, Avalara

On Monday, July 31, the nexus committee of the Multistate Tax Commission ("MTC") approved MTC participation in a multistate sales tax amnesty program for sellers whose only nexus with a state is the use of fulfillment services offered by third-party marketplaces.  The goal of this amnesty is to help online sellers become sales and income tax compliant.

The MTC (like SST) is an intergovernmental state tax agency working on behalf of states and taxpayers to facilitate the equitable and efficient administration of state tax laws that apply to multistate and multinational enterprises.

The amnesty application period will be open from August 17 through October 17, 2017.  The states hope/expect sellers to start collecting on December 1, 2017.  Anyone who wants to participate must use the MTC's voluntary disclosure agreement (VDA).

As of today, the participating states intend a complete forgiveness of back sales taxes, with varying degrees of forgiveness for income taxes.

States that have committed to participate are:

  • Alabama
  • Arkansas
  • Colorado
  • Connecticut
  • Idaho
  • Kansas
  • Kentucky
  • Louisiana
  • Nebraska
  • New Jersey
  • Oklahoma
  • South Dakota (?)
  • Texas
  • Utah
  • Vermont

Eight additional states will respond by August 17 if they will participate. Some of these additional states may require some payment of back taxes.

Once a seller completes the multi-state voluntary disclosure program paperwork the MTC will route the necessary paperwork to each participating state for which the seller is seeking an amnesty.

Indiana and Pennsylvania want to participate but are not members of MTC.  If these states do participate, a seller will have to use their state-specific VDAs.

The full terms and conditions for this program, will be posted on mtc.gov.

 

Interested in integrating Avalara's tax automation services with your Visual Next suite? Contact us at sales@visualnext.com