WINTER 2019

66 THE DISTRIBUTOR’S

66 THE DISTRIBUTOR’S LINK Roman Basi Roman Basi is the President of The Center for Financial, Legal & Tax Planning, Inc. Roman graduated from Milliken University obtaining a Bachelor’s of Science Degree with a minor in Psychology. He earned an MBA from Southern Illinois University with an emphasis in Accounting and recevied his JD degree from Southern Illinois University. Roman is a licensed attorney in Illinois, Missouri and Florida and is in high demand for his expertise in financial, legal and tax matters. His areas of expertise include mergers and acquisitions, contracts, real estate law, tax and estate planning. STATE BY STATE, MONTH BY MONTH, DAY BY DAY STATE SALES TAX LAWS CONTINUE TO CHANGE Major changes in state sales tax have taken place in the last month. As the Supreme Court shocked the United States business and legal world by overturning the decades old decision of Quill Corp. v. North Dakota (1992), many business owners, corporate attorneys, and CPA’s were caught unprepared. As you read in our July article, the Supreme Court’s overturning of Quill ushered in a new era of state led taxation for out-of-state vendors. This new era is setting aside the physical presence or nexus, as the Supreme Court on June 21, 2018, in South Dakota v. Wayfair, Inc, created an opportunity for states to create new standards for out-of-state vendors – specifically online retailers. The common threshold many states have enacted is similar to the South Dakota Law threshold in Wayfair, (0,000 of sales within the state, or 200 separate sales transactions), however not all states are committed to such thresholds. This changes the landscape for businesses as it requires business owners to keep individual records for each state pertaining to the number of transactions and sales totals. Despite what is determined a “safe” threshold by legal standards (0,000 of sales within the state, or 200 separate sales transactions) some states have taken it upon themselves to stray from these states have added to the already chaotic position of state sales tax. Not only are businesses forced to stay up with the differing and changing sales tax laws, but the state enactments of such laws vary from state to state. For example, Alabama under Rule 810-6-2-90.01 begins enforcing its sales and use tax October 1, 2018. However, Louisiana under the provisions of Act 5 [2018 La. Sess. Law Serv. 2nd Ex. Sess. Act 5 (H.B.17)] will not implement new sales and use taxes until January 2019. Further, it is not only the multitude of enactment dates that must be known, but also the varying thresholds that are beginning to vastly deviate from those set forth in Wayfair. For example, Alabama uses a strict in-state sales threshold of 0,000, and opposite of Alabama, CONTRIBUTOR ARTICLE Oklahoma subjects out of state online retailers to state sales tax if ,000 or more of in-state sales are made. Additionally, Georgia and Connecticut require 0,000 and 200 separate transactions. The best method is to find tax professionals with the separate information on each state you make sales in. Additionally, there is some surety in the nationwide transition as twenty-four states have implemented the Streamlined Sales and Use Tax Agreement. “This agreement was created to simplify and modernize sales and use tax administration by substantially reducing the burden of tax compliance” per the Streamlined Sales Tax website. The Streamlined Sales and Use Tax Agreement website also specifies where the agreement aims to improve sales and use tax systems for sellers with the following: 1. State level administration of sales and use tax collections 2. Uniformity in the state and local tax bases 3. Uniformity of major tax base definitions 4. Central, electronic registration for all member states 5. Simplification of state and local tax rates 6. Uniform sourcing rules for all taxable transactions 7. Simplified administration of exemptions 8. Simplified tax returns 9. Simplification of tax remittances 10. Protection of consumer privacy One major benefit of this agreement is that it allows vendors to register, thus creating a one stop system to allow payment of online sales tax. With the decision in Wayfair, it will be interesting to see if/how the agreement is modified to accommodate the states that have switched to the monetary sales threshold and/ or transaction minimum. If your business sells products online in different states without a physical presence or nexus and you’re not maintaining adequate records, you may be at serious risk. ROMAN BASI

Earnest Machine is now offering DIN spec metric hex head cap screws in response to increased demand in the marketplace. “ISO metric hex head cap screws have been part of our product line for years,” said Kirk Zehnder, CEO of Earnest Machine. “However, we’re seeing a rise in the demand for metric product, due to globalization and the increase of imported heavy equipment. Many repairs now call for metric pieces.” Earnest Machine will carry metric product made to the DIN spec, which is the German national standard. Fasteners will be made to the DIN 931 and 933 spec, in fine and coarse threads, property classes 8.8 and 10.9, and plain and zinc clear trivalent finishes. Zehnder said the company will also offer a variety of value-added services, including custom plating, drilling and slotting rework, broken case quantities, kitting and packaging, and branded drop shipping. Metric products are needed in a variety of projects and industries including heavy equipment, agriculture, heavy truck, and so on. As the global economy shows more of a shift toward metric, the need for metric product becomes more acute. “While DIN spec products are not required for projects, it is understood that German engineering standards yield the highest quality product,” said Zehnder. “These pieces are made from the strictest standards, so when you hear that a fastener is made to the DIN spec, you can trust this part will have lasting power.” Earnest Machine is taking pre-orders now for DIN spec metric hex head cap screws and will begin shipping product in September. Earnest Machine was founded in 1948 and is a global importer, distributor, and manufacturer of large diameter and hard-tofind fasteners for the agriculture, construction equipment, heavy transportation, mining, structural construction and wind industries. Earnest maintains warehouses, sales offices, and manufacturing centers in Cleveland, OH and Wolverhampton, England, with warehouses in Atlanta, GA and Indianapolis, IN. For more information contact Earnest Machine Products by Tel: 1-800-327-6378 or visit them online at www.earnestmachine.com. THE DISTRIBUTOR’S LINK 67