New York Department of Taxation and Finance Issues Notice Regarding Sales Tax Registration Requirement for Businesses with No Physical Presence in New York

In January, the New York Department of Taxation and Finance issued a notice regarding sales tax registration requirements for businesses with no physical presence in New York.  The notice responds to the U.S. Supreme Court’s ruling in South Dakota v. Wayfair, 138 S.Ct. 2080 (2018), which overruled prior precedent prohibiting states from imposing sales tax collection requirements on businesses with no physical presence in the state.

The notice requires a business (1) that made more than $300,000 in sales of tangible personal property delivered in New York, and (2) that conducted more than 100 sales of tangible personal property delivered in New York, in the four preceding sales tax quarters, to register as a sales tax vendor and collect and remit New York and local sales taxes.  This rule applies even if a business has no physical presence in New York.

The New York Department of Taxation and Finance urges businesses that meet this threshold, but that have not registered as vendors, to register now.  Information about the sales tax registration process is found in the New York Tax Bulletin, How to Register for New York State Sales Tax (TB-ST-360).