NH Has No Sales Tax
The U.S. Supreme Court's South Dakota v. Wayfair
decision earlier this summer has stripped New Hampshire retailers of a key advantage in place for decades: NO SALES TAX
Under this decision, New Hampshire retailers are now subject to demands for customer information and tax payments from over 10,000 separate taxing districts across the country. Any sale that is not in-person is subject to these demands.
Despite referencing potential thresholds such as $100,000 in sales prior to collection, the decision sets no actual thresholds or time frames, and leaves those decisions to be made by individual taxing authorities. This means New Hampshire businesses could be forced to submit to audits and demands for payment for any volume of sales at any time from any of the 10,000 taxing districts across the USA.
An immediate concern is the opportunity this creates for fraudulent efforts to gain business information or even seek payment of fraudulent tax bills.
For this reason, the Department of Business and Economic Affairs strongly urges businesses that receive requests for information related to the collection of sales tax from out-of-state taxing authorities to immediately alert their accountant, attorney and other advisors to determine a course of action.
They should also notify the New Hampshire Department of Justice (DOJ) by calling its Consumer Information Line at 888-468-4454 or 603-271-3643. DOJ’s first course of action will be to make sure this is a legitimate request.
Because of the many questions from New Hampshire businesses, we have provided answers to frequently asked questions below. We will continue to add to this webpage information as it becomes available.
Frequently Asked Questions
What did the U.S. Supreme Court’s decision South Dakota v. Wayfair, Inc. change?
What should retail businesses expect to happen now that over 10,000 taxing authorities across the US are in position to enforce their taxes on sales tax-free NH businesses?
What should a business do if they hear from an out-of-state taxing authority?
What types of sales are subject to potential taxation by an out-of-state taxing authority?
Can the State of NH provide businesses assistance to fight these demands for payment?
What is the State of New Hampshire doing to address this situation?
South Dakota v. Wayfair
New Hampshire's amicus
Gov. Sununu's news release
on the Wayfair decision
Commissioner Caswell's statement
on the Wayfair decision