Analysis: Pennsylvania not on track to tax online sales

Pennsylvania is not compliant with a U.S. Supreme Court decision outlining how states can go about requiring online retailers to collect sales taxes on products sold within their borders, according to an analysis by the Washington-based Tax Foundation.

Pennsylvania will need to make some additional legislative changes to comply with the legal checklist handed down last summer in South Dakota v. Wayfair, the foundation's study says. Pennsylvania established a date to enforce its online taxation plans prior to Wayfair.

To pass legal muster, the high court suggested that states needed to establish a taxing regime that exempts retailers with limited transactions in the state; adhere to conformity rules set by the Streamlined Sales and Use Tax Agreement; and have a single sales tax administration with the state.

Twenty-three states are fully or nearly compliant with the Wayfair checklist, but the remaining states have several items out of sync with the court decision, according to the study authored by Joseph Bishop-Henchman, the foundation’s executive vice president.

Five states – Alaska, Delaware, Montana, New Hampshire and Oregon – have no sales tax.


Which States Are Ready to Tax Online Sales?

StateCompliance With Wayfair Checklist? Enforcement Date Established?
AlabamaNo; legislative changes requiredOct. 1, 2018
ArizonaNo; legislative changes requiredNo
ArkansasMostly compliant; proceed with cautionNo
CaliforniaNo; legislative changes requiredNo
ColoradoNoMay, 31, 2019
ConnecticutNo; legislative changes requiredDec. 1, 2018
D.C.No; legislative changes requiredPending
FloridaNo; legislative changes requiredNo
GeorgiaYesJan. 1, 2019
HawaiiNo; legislative changes requiredJuly 1, 2018
IdahoNo; legislative changes requiredNo
IllinoisNo; legislative changes requiredOct. 1, 2018
IndianaYesOct. 1, 2018
IowaYesJan. 1, 2019
KansasMostly compliant; proceed with cautionNo
KentuckyYesOct. 1, 2018
LouisianaNoJan. 1, 2019
MaineNo; legislative changes requiredJuly 1, 2018
MarylandNo; legislative changes requiredPending
MassachusettsNo; legislative changes requiredIn court
MichiganMostly compliant; proceed with cautionOct. 1, 2018
MinnesotaYesOct. 1, 2018
MississippiNo; legislative changes requiredSept. 1, 2018
MissouriNo; legislative changes requiredNo
NebraskaMostly compliant; proceed with cautionJan. 1, 2019
NevadaYesNov. 1, 2018
New JerseyYesNov. 1, 2018
New MexicoNo; legislative changes requiredNo
New YorkNo; legislative changes requiredNo
North CarolinaMostly compliant; proceed with cautionNov. 1, 2018
North DakotaYesOct. 1, 2018
OhioMostly compliant; proceed with cautionIn court
OklahomaMostly compliant; proceed with cautionJuly 1, 2018
PennsylvaniaNo; legislative changes requiredIn effect before Wayfair ruling
Rhode IslandNo; legislative changes requiredIn effect before Wayfair ruling
South CarolinaNo; legislative changes requiredPending
South DakotaYesNov. 1, 2018
TennesseeNo; legislative changes requiredJuly 1, 2018
TexasNo; legislative changes requiredNo
UtahYesJan. 1, 2019
VermontYesJuly 1, 2018
VirginiaNo; legislative changes requiredNo
WashingtonMostly compliant; proceed with cautionOct. 1, 2018
West VirginiaYesJan. 1, 2019
WisconsinMostly compliant; proceed with cautionOct. 1, 2018
Source: Tax Foundation

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