Kansas Passes Economic and Marketplace Nexus Provisions Despite Veto Efforts

Posted on May 27, 2021

Governor Laura Kelly of Kansas vetoed a tax bill that contained regulations for remote sellers and marketplace facilitators, including setting a threshold for out-of-state sellers in order to establish economic nexus. The Kansas House and Senate overrode this veto in early May and passed the bill, becoming effective on July 1, 2021.

Kansas was unique in their provisions for remote sellers, as they were one of the few states to require all sellers to register for a sales tax permit, regardless of the number or value of sales in the state. Senate Bill 50 provides that remote sellers and marketplace facilitators will only be required to collect and remit sales tax if they meet the threshold of at least $100,000 gross receipts from sales to Kansas customers. In addition to state and local taxes, the bill also includes provisions to require marketplace facilitators to collect and remit prepaid wireless 911 fees, beginning April 1, 2022.

Tips for the Taxpayer

Sales tax laws are constantly changing and becoming more complex. Allyn recommends that the taxpayer conduct a thorough analysis of the locations outside of their home state to which sales are being sourced to and keep up to date with changes in each locations tax code, while also making sure to keep up with changing nexus regulations. Allyn encourages the taxpayer to maintain full tax compliance as the neglect of such changes can result in an increase in liabilities for the seller, such as penalties and interest for underpaid taxes. More consequential damages can occur under an audit to the taxpayer, potentially resulting in a high amount of retroactive sales tax due.

How Can We Help?

Allyn’s tax team is staffed with seasoned tax professionals experienced in all aspects of Federal, multi-state and local tax compliance and consulting for large US and global corporations. We use that experience to your advantage.

Allyn files state and local sales tax returns in every US taxing jurisdiction. Allyn obtains sales tax data, analyzes it for proper tax basis, and exemptions, and ensures timely and accurate sales tax return filing and sales tax payment processing. We can manage your tax compliance, create a solid tax process, and provide audit defense for your company.

Our clients rely on us to consult on any and all unexpected tax questions that come their way, of which there are no shortages. Our significant expertise in this area means you can focus on your core business while we focus on ensuring you are paying your fair share in taxes and not a penny more.

Contact us and we can provide a customized cost-effective solution to meet your company’s needs. For further information on Allyn Tax services, please contact: tax@allynintl.com.

We routinely conduct opportunity reviews in all US states for companies and advise clients with proactive measures to improve their tax compliance.

Contact us and we can provide a customized cost-effective solution to meet your company’s needs. For further information on Allyn Tax services, please contact: tax@allynintl.com.

For More Information

If you are interested in learning more about this topic or other tax topics, please visit our Tax Publications under News & Publications at www.allynintl.com.

Contributor: Eleene Ismail


About Allyn International

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn’s clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China, Prague, Czech Republic, and Dubai, U.A.E. For more information, visit www.allynintl.com.