Quoted from flynnibus:
You're looking at it wrong. The thresholds are about EXCEPTIONS -- not when the tax applies or not... meaning the tax itself is always legal and expected. The exceptions exist to establish practical limits so that small timers don't get buried. It's not a case of "the tax only exists if..." -- its "this business does not need to participate if its smaller than..."
This whole tangent is not introduced by recent changes... it's just a problem exaggerated for the businesses by the idea of dealing with many states.
This whole problem is actually created because such an economy has built up IN THE LOOPHOLE... not that the principles are now somewhat new. It's a challenge of how to retrofit long standing ideas, onto a model that has built up while being able to ignore them previously.
It's not over... the current interpretation really is not practical and will hinder economic growth. So ultimately it will have to be addressed again.
Ah yes, this is correct. As a consumer, we have, for so long, seen purchases from out of state entities that don’t have a physical presence in our state as “tax free”. And this way of thinking has been incorrect. I know ignorance is not a good excuse, but many don’t realize they were suppose to voluntarily pay the tax on their out of state purchases...I’ve never had my accountant ask, at tax time, if I made any out of state purchases this past year, and what the total was so I can pay my tax on it. But I understand now that there was no good way to enforce the tax due until now.