Concerning the extension of the small retailer exception to the sales and use tax destination sourcing rules.
2022 Regular Session
Fiscal Policy & Taxes
Sales and Use Tax Simplification Task Force. State sales tax is currently calculated based on the buyer's address when the taxable product or service is delivered to a consumer, and this is known as destination sourcing. There is an exception that allows small retailers with less than $100,000 of retail sales to source their sales to the business' location regardless of where a purchaser receives the tangible personal property or service, but this exception expires on February 1, 2022. The bill extends the repeal of the exception from February 1, 2022, until October 1, 2022. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)