
From Sales to Income Tax: States Are Watching
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More than a dozen states have repealed the 200 transaction threshold for economic nexus, aiming to ease the burden on small sellers. Our guest Diane Yetter, President and Founder of Yetter Tax and the Sales Tax Institute, breaks down what these changes mean for businesses, particularly those navigating multi-state sales. Diane explains why small sellers can no longer rely solely on transaction counts to determine nexus and why a broader understanding of tax obligations is now essential.
We unpack the benefits of these reforms, the challenges that persist, and what steps businesses should take to stay compliant in an ever-evolving regulatory environment.
Key Takeaways:- A growing number of states are repealing the 200 transaction threshold, helping reduce compliance burdens for small sellers.
- Guest Diane Yetter stresses the importance of understanding both economic and physical nexus requirements.
- These policy changes are considered a win for taxpayers, particularly small businesses.
- Significant changes to Illinois’ tax structure raise concerns about potential discrimination against out-of-state sellers.
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