District of Columbia to Adopt Economic Nexus Rules by End of 2018

Monday, December 10th, 2018

Capitol Building in the District of Columbia.
District of Columbia

TTR has received informal guidance from the Washington D.C. Office of Tax and Revenue that the District intends to adopt economic nexus rules by the end of the year.

The District City Council has already passed an economic nexus rule like the one approved by the United States Supreme Court in the Wayfair decision. The rule imposes a collection requirement on out-of-state sellers that sell more than $100,000 or 200 or more separate retail transactions delivered into the District. The rule also addresses marketplace seller and facilitator collection and reporting requirements.

The Mayor of Washington D.C. has not yet signed the rule into law. The Office of Tax and Revenue anticipates having an emergency rule in place by the end of the year, because the rule will still have to be transmitted to Congress for a 30 day review period even after the Mayor signs the law.

We are providing this update in advance so that remote sellers will have time to implement software changes, even though a final rule has not been formally made into a law. Sellers should anticipate the $100,000 or 200 transaction rule will be in place and be enforced by January 1, 2019.


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

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