New York is just the latest of states to add economic nexus as it relates to sales tax. New York just issued an Important Notice (N-19-1) where they say that a business that had no physical presence in New York State but has both made more than $300,000 in sales of tangible personal property delivered in the state and conducted more than 100 sales of tangible personal property delivered in the state in the immediately preceding four sales tax quarters is required to register as a sales tax vendor, and collect and timely remit the applicable state and local sales tax.

This will effect not just sellers on sites like Amazon and Shopify but also companies who have their own e-commerce platform. An interesting difference in New York vs. some other states is that the analysis is based on a rolling 4 quarters instead of the prior year like many other states have done. This will make the analysis slightly harder to do and also make it more likely for some companies to cross the $300,000 / 100 sales transactions limits depending on seasonality of products.

If you have any questions or needs please feel free to contact us and we would be more then happy to speak to you and see if this change could effect your business.