Consumer Protection BureauReporting Out-of-State Sales Tax Requests for NH Businesses

On July 19, 2019, Governor Sununu signed into law SB 242, a bill passed by the General Court in response to the United States Supreme Court's decision in South Dakota v. Wayfair, Inc., 138 S.Ct. 2080 (2018). In Wayfair, the United States Supreme Court overruled a longstanding requirement that an out-of-state seller have a physical presence in a taxing state before that state can require the seller to collect and remit sales or use tax. In the wake of the Wayfair decision, it is possible that other states, or localities within those states, will attempt to collect sales or use tax from New Hampshire businesses that do not have brick-and-mortar facilities within those states or localities, but remotely sell goods to individuals or entities located there. SB 242 is designed to address uncertainty surrounding this practice and to ensure that any such collection efforts are bona fide and non-fraudulent and comport with the United States and New Hampshire Constitutions.