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Sales tax billing in effect for additional states

Sheena TrepanierSheena Trepanier Expensify Success Coach - Admin Posts: 1,388 Expensify Team
edited May 1 in Product Updates

Expensify is charging sales tax for the following states, effective September 1, 2019. If you are in one of these states, your October 1st bill was the first to include sales tax.

  • Connecticut
  • District of Columbia
  • Hawaii
  • Iowa
  • New Mexico
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • South Dakota
  • Utah.

Effective October 1, 2019, the following states will see sales tax. If you are in one of these states, your November 1st bill was the first to include sales tax.

  • Arizona
  • Tennessee.

We also are required to charge sales tax in:

  • Massachusetts
  • New York
  • Texas
  • Washington (state).

For context, on June 21, 2018, the Supreme Court made a ruling in South Dakota V. Waifare, Inc. that makes SaaS companies subject to sales tax based on 'economic and virtual' presences, instead of physical presence only. In the past, states could only tax sales by businesses with a physical location in the state. Now economic activity in a state — also known as economic nexus — can trigger a sales tax collection obligation. "Economic nexus" refers to criteria other than physical presence in evaluating a sellers connection to that state. 

We want to be as transparent as possible and let you know that if you are in one of these states this will impact your Expensify bill.

Please reach out to [email protected] for any questions or concerns!

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