The new standards, the details of which vary by state, apply to online retailers that do not have a physical presence in the taxing jurisdiction.

Four more states’ sales tax collection statutes and regulations that require online retailers to collect sales tax on online orders from residents go into effect on Thursday, Nov. 1. They are New Jersey, North Carolina, South Carolina and South Dakota.

The new standards, the details of which vary by state, apply to online retailers that do not have a physical presence in the taxing jurisdiction.

The moves stem from the states acting quickly in the wake of the U.S. Supreme Court in June ruling in the South Dakota v. Wayfair Inc. case that, for the first time, states and local governments could require online retailers to collect sales tax even if they don’t have a physical presence, or nexus, in the state or local tax jurisdiction.

As a result, states are scurrying to tap online sales as a new revenue stream. For instance, North Carolina’s Department of Revenue in August issued guidance that explained the particular parameters that would necessitate an online retailer to collect and remit online sales tax in the state; merchants that have gross revenue from remote sales that exceed $100,000 or that have 200 or more separate transactions must register and begin collecting and remitting tax by Nov. 1, or 60 days after meeting the threshold.

The states are reclaiming their authority over sales tax collection, says Jason Brewer, executive vice president, communications and state affairs at the Retail Industry Leaders Association. “States, in their own way, are implementing either via regulation or statute what they need to promote or compel sellers to comply,” he says.

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As of Nov. 1, 22 states will have statutes or regulations in place to require sales tax collection by remote sellers, according to Vertex Inc., a tax technology company.

Read about how e-retailers are navigating the hodgepodge of state laws and regulations in Internet Retailer’s October issue cover story, “The Supreme Court overturned Quill. Now what?” or listen to an Internet Retailer webinar on the topic here. You can find additional resources and research available here.

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