USA: New legislation for Kansas enacting economic nexus and marketplace provisions

Kansas Economic Nexus Threshold

Starting July 1st, 2021 all long-distance retailers whose total revenue in Kansas surpasses $100.000 will have to collect and remit sales tax in Kansas. This economic nexus was not in place before which made all retailers liable for sales tax, even small sellers.

Should the new nexus take place, long-distance retailers who sell their goods to Kansas customers will be liable for sales tax once the gross value of sold products exceeds the threshold of  $100.000.

Marketplaces

Marketplace facilitators who are selling services or property that are subject to tax and exceed $100.000 will also be required to collect and remit tax. This includes third parties renting or providing accommodation in a home, apartment or residential establishment but only for short term (less than 29 consecutive days).

As an exception, if the marketplace’s customers collect and remit taxes themselves and the marketplace has adequate proof, then a waiver can be issued from the already mentioned marketplace requirement.

In addition, starting April 1st 2022 all marketplace facilitators will be liable for collecting prepaid wireless 911 fees.