Thu, 08/01/2019 - 13:55

By Rachel Tatum

Online Media Center
Members of the media can find exhibitor press releases in the SEMA Show Online Media Center.

SEMA Show exhibitors are announcing plans for the upcoming event, taking place November 5–8, in Las Vegas, with new-product debuts and innovations. Below are some of the latest announcements you will find in the Online Media Center:

To see more press releases from SEMA Show exhibitors, visit the Online Media Center. Find all SEMA Show News on the SEMA Show website.

Exhibitors can upload releases to be included in the Online Media Center by using this link. For information about PR opportunities for SEMA Show exhibitors, contact Rachel Tatum at rachelt@sema.org, 909-978-6669.

Thu, 08/01/2019 - 13:44

SEMA News—August 2019

INTERNATIONAL

By Linda Spencer

Australia: A Top Export Market for SEMA Members

2019 SEMA Australia Exhibiting Companies
  • Borla Performance Industries Inc.
  • Crower Cams
  • Dee Zee Inc.
  • Dynocom Industries Inc.
  • Go Rhino
  • Injen Technology Co.
  • Kelford Cams
  • McLeod Racing LLC
  • Motor State Distributing
  • Motorsports Fuel and Equipment Inc./RACE-GAS
  • MotoshieldPro
  • OBD Solutions
  • QA1
  • Road Armor
  • Sherwood Innovations Inc.
  • Specialty Vehicle Engineering Inc./DBA Hamburger’s Superchargers
  • Wiring Specialties LLC

Australians have been modifying and personalizing their vehicles for nearly as long as enthusiasts have in the United States. Though it’s 8,000 miles from Melbourne to Los Angeles, Australia has long been an important export market for U.S. firms and remains so to this date. In a December 2018 SEMA survey of U.S.-based manufacturer members, Australia was the number-two export market for U.S. companies, trailing only Canada.

Seventeen companies representing a diverse number of products traveled with SEMA to Australia in May to learn more about the market and to develop or strengthen distribution there. In addition to exhibiting at the MotorEx show, the delegation participated in a number of briefings on the Australian market, including one with top trade buyers and another by U.S. government officials from Washington. The lively sessions covered the various specialty-equipment niches ranging from off-road to drag racing and showcased trends, opportunities and obstacles.

A few of the topics discussed included the strong niche demand for brands and models available in the United States, such as the new Mustang, the JL Wangler and fullsize pickups. Also discussed were the differences in design and engine displacements in vehicles with the same name between the the two markets, such as the Ford Ranger.

While U.S. products for Mustangs, Jeeps and fullsize pickups are in strong demand, an increasing number of U.S. manufacturers are growing their market share by also producing products for vehicles popularly sold in Australia but not available in the United States, such as the Toyota HiLux and Mitsubishi L200/Triton.

Over the past 10 years, SEMA, in partnership with the U.S. government, has made available a number of those vehicles, including the HiLux, L200, Nissan Patrol Y61 and Australian-spec Ford Ranger. Nearly 300 SEMA-member companies have borrowed the trucks in order to make export-ready product for Australia and other international markets.

Certain products, such as wiring harnesses and engine brackets, need to be retooled because Australia is one of 75 countries in the world with right-hand drive. Trade buyers at MotorEx also discussed the higher proportion of vehicles that are powered by diesel rather than gasoline engines. For example, half of all SUVs and utes (pickups) in Australia have diesel-equipped engines. The Australian resellers noted that Jeep Cherokees are more likely to be diesel-powered, as is the case for the fullsize pickups sold in Australia. But there are exceptions. For example, the RAM is typically gasoline-powered, as is the Jeep Wrangler.

The accompanying photos and captions offer insights into the 2019 Australia Business Development Melbourne trip.

Dan Voight

“This was our second year in a row on the SEMA Australia Business Development Program,” said Dan Voight (center), motorsport sales manager for QA1. “It really showed our commitment to our customers and the market there and further cemented the relationships we started on the first visit. The market information we gained would have been impossible without attending the conference. The traffic at the QA1 booth in the SEMA section of the MotorEX show was excellent. We carefully queried visitors on their brand awareness of QA1, and it showed a sharp increase over the previous year.”
Go RhinoRamon Barrios (left), international sales manager for Go Rhino, participated in the 2019 SEMA Australia trip for the manufacturer of products for Jeeps, trucks and SUVs. “As in the United States, Australians love to go off-roading and have plenty of land to do so in a country the size of the United States but with a population of under 25 million,” noted Barrios. “Thanks again to SEMA for the good show in Australia and the opportunity to allows us to explore new business in other continents. [We are pictured ] here with our new distributor in New Zealand.”
Motorsports Fuel and Equipment Inc.Consul General Michael Kleine (right) of the U.S. Consulate in Melbourne visited the SEMA section and met with the SEMA companies. Here, he learned about RACE-GAS products from the company’s president and COO, Mark Link (center), and its CEO, Daniel Muldowney (left). Elizabeth Couch, International Economist Office of Transportation & Machinery/Automotive Team from the Department of Commerce’s headquarters and Duncan Archibald, Commercial Specialist U.S. Consulate General, Sydney, spent the week with the SEMA delegation meeting one-on-one with the U.S. companies and providing a briefing on the Australian market.
MotorEx showBuyers visited the SEMA section at the MotorEx show. The 2019 SEMA Australia participants exhibited in turnkey booths during the two-day event, which was open to both trade and consumers.

Road ArmorRoad Armor was represented in Australia by Chris Faustmann (second left), director of engineering, and Brandon Varn, (second right), director of
marketing.


 

Dee Zee Inc.Iowa-based Dee Zee Inc.—a manufacturer of running boards, toolboxes and step bars, among other products—has traveled to Australia with SEMA several times; this year represented by Jason Mrachina (center), vice president of sales. “The SEMA trip to Melbourne gave Dee Zee a unique opportunity to talk with a variety of customers at every stage of the distribution channel,” noted Mrachina. “While at the MotorEx Show, we were able to match with several viable jobber/distributors for the Australia market. It would be much more difficult, if not impossible, for us to make these connections on our own.”
McLeod Racing LLC“As a company that has sold to Australia for many years, we took part in the SEMA Australia trip thinking we knew the market,” said Robert Scheid (right) director of business development for McLeod Racing LLC. “After our trip with SEMA, we realized that not only didn’t we know the current customers we had as well as we should, but we also didn’t have a grasp on the market at all. Now we have a firm game plan and have already opened new distribution directly resulting from our visit with SEMA. That is why we do these trips and recommend participation to any SEMA company wanting to export their products.”
Borla Performance Industries Inc.“The SEMA trip to Australia was once more a great success for Borla,” said Josh Abbott (center), global sales manager for Borla Performance Industries Inc. “This was our fourth time with the U.S. delegation, and the program exceeded our expectations every year. There is certainly a need in the marketplace for high-quality, genuine U.S.-made products. Despite the fact that there is no car manufacturing in Australia anymore, the country’s automotive aftermarket parts distribution is witnessing steady growth. Australia is hosting some of the leading aftermarket manufacturers and original equipment suppliers, which are continuously on the lookout for establishing their mark in the region’s aftermarket space. The market is in the mature stage of its cycle, where revenue growth has been plateauing. There are great opportunities for those who are willing to invest money and time to learn about the market and approach it with an open mind. We will most definitely participating in the SEMA trip again next time.”
Motor State Distributing“SEMA’s international trade programs provide distributors and manufacturers with excellent opportunities to engage with industry professionals and enthusiasts in markets such as Australia and around the world,” said Darren Lane (left), export sales manager for Motor State Distributing. “That allows companies like ours to have real face-to-face interactions with current and potential customers that we might otherwise never meet.”
Injen TechnologyEach participating SEMA company exhibited at the MotorEx show and visited leading specialty-equipment shops in the Melbourne area. Networking events and panel discussions with top trade buyers and U.S. government officials rounded out the schedule. Pictured is Jay Crouch (left), director of global business development for Injen Technology.
Kelford Cams“Professional, profitable and enjoyable are three words I would use to describe the SEMA Australian showcase,” said James McMullan (left), operations manager for Kelford Cams. “This extremely well-organized event not only gave me the chance to be face-to-face with the right types of new clients but also to catch up with old friends. I gained valuable insights into the Australian market but also gathered new contacts, alliances and friendships with genuinely passionate industry innovators. If you are considering attending one of the SEMA showcases like this one, I would recommend just doing it. Victory loves preparation, and the SEMA team definintely put the hard work in and set us up to succeed.”
OBD SolutionsDave Beecham (left), OBD Solutions director of business development, and Thomas Myroniak (second left), director of marketing, talked with buyers interested in learning more about the company’s board diagnostics tools. The company traveled with SEMA for the first time in 2019, participating in the March SEMA Middle East trip in Abu Dhabi before joining the delegation to Australia in May. “Our participation in the Australia and MotorEx Show allowed us to connect with key performance and off-road buyers in the region, as well as learn about market-specific needs, challenges and expectations,” said Myroniak. “Like the other SEMA international events, this program helped us uncover opportunities and build relationships we would not have on our own.”
Wiring Specialties LLC“Considering that this was our second trip to Australia and the MotorEx show, we had an idea of what to expect and were able to focus on solidifying our relationships with the local businesses to promote future sales,” said Yury Lyalko (left), president of Wiring Specialties LLC, who attended the event with Vadim Belegorodsky (second left), the company’s vice president of product development. “Once again, the SEMA international team did a phenomenal job of organizing meetings with pre-qualified buyers, shop trips and introductions that help bridge the gap between the U.S. companies and Australian buyers. Bringing the SEMA name to the trade table helps establish the credibility behind the companies involved on both sides. That arrangement simply does not exist outside the events Linda Spencer and her team put together. I hope we can continue to grow our presence in Australia and other world markets through these international events in years to come.”
Michael KleineConsul General Michael Kleine (right) of the U.S. Consulate in Melbourne visited the SEMA section and met with the SEMA companies. Here, he learned about RACE-GAS products from the company’s president and COO, Mark Link (center), and its CEO, Daniel Muldowney (left). Elizabeth Couch, International Economist Office of Transportation & Machinery/Automotive Team from the Department of Commerce’s headquarters and Duncan Archibald, Commercial Specialist U.S. Consulate General, Sydney, spent the week with the SEMA delegation meeting one-on-one with the U.S. companies and providing a briefing on the Australian market.
Crower CamsThe SEMA Business Development Program provides an opportunity for companies to travel to the market for the first time and have the ability to concentrate on developing or growing their buyer network. SEMA arranges the opportunity for participating companies to meet with pre-vetted trade buyers in both the show and in more informal settings. SEMA also handles hotel arrangements and meals, panel discussions and tours of installers, distributors and retailers—allowing U.S. firms to focus on developing business. Louis Floquet (center) and Vernon Dinkel (right) attended the event on behalf of Crower Cams. It was the company’s first overseas trip to Australia.
Vehicle Engineering Inc.Edward Hamburger (left) president of Specialty Vehicle Engineering Inc./DBA Hamburger’s Superchargers Inc., met with buyers at the event. “Exhibiting with SEMA at MotorEx in Australia was instrumental for Hamburgers Superchargers to open new vendor channels in a unique market,” said David Hamburger (second left), the company’s vice president. “I strongly recommend that all SEMA members who want to grow their businesses take a look at SEMA’s international programs.
DynocomDynocom was one of 17 companies exhibiting in this year’s SEMA section in turnkey booths at the Melbourne-based MotorEx show. Vice President of Export Sales Andy Lamus (center) met with buyers. “The Australian trip for Dynocom was an incredible experience,” said Lamus. “We were able to get a good understanding of the local market—both by visiting specific shops around the Melbourne area and the interaction with visitors to our booth at the MotorEx show, which resulted in sales down under for us and a new opportunity for the growth of our company. Thanks, SEMA!”
Wade KawasakiSEMA Immediate Past Chairman/Secretary of the Board of Directors Wade Kawasaki (right) spoke with a retailer/installer of specialty-equipment products for Jeep Wranglers. “I always look forward to visiting Australia—especially when it involves growing the global footprint of the automotive aftermarket,” Kawasaki said. “This is the fourth SEMA Australia Business Development Program, and our mission is to bring SEMA-member manufacturers together with passionate buyers from the region to develop relationships and explore a growing market that is full of enthusiasm for hot rods, racing, off-roading and all things automotive.”
Tim MartinSEMA CEO and President Chris Kersting (left) and SEMA Chairman of the Board Tim Martin (right), chatted with Dee Zee’s Mrachina during the SEMA Australia trip. “Australia has proven to be a desirable country for the automotive aftermarket,“ observed Kersting. “With nearly 20 companies participating in our fourth trip to Australia, members exhibited at the region’s leading industry show and met with new buyers. We’re pleased to see members expanding their markets in a country that provides our industry with such great opportunities.“
To take advantage of the array of resources and programs that can assist SEMA members in growing their global sales, including upcoming trips and the international vehicle measuring program, contact Linda Spencer at lindas@sema.org.

 

Thu, 08/01/2019 - 13:37

By Rachel Tatum

Starting with tuners, then moving to domestics (and most recently off-road vehicles), Neil Tjin is working on a ’94 Toyota Land Cruiser for submission to the SEMA Battle of the Builders competition. So far, the GEN VI: 80-Series SUV maintains the majority of its rugged good looks (including an OEM factory grille), but Tjin never fails to impress with his clean and stylish builds. Watch the video to learn more about what makes this build unique:


Visit the SEMA Show YouTube Channel for more videos and builder interviews, and subscribe so you don’t miss new videos leading up to the 2019 SEMA Show.

Thu, 08/01/2019 - 13:37

By Rachel Tatum

Starting with tuners, then moving to domestics (and most recently off-road vehicles), Neil Tjin is working on a ’94 Toyota Land Cruiser for submission to the SEMA Battle of the Builders competition. So far, the GEN VI: 80-Series SUV maintains the majority of its rugged good looks (including an OEM factory grille), but Tjin never fails to impress with his clean and stylish builds. Watch the video to learn more about what makes this build unique:


Visit the SEMA Show YouTube Channel for more videos and builder interviews, and subscribe so you don’t miss new videos leading up to the 2019 SEMA Show.

Thu, 08/01/2019 - 13:37

By Rachel Tatum

Starting with tuners, then moving to domestics (and most recently off-road vehicles), Neil Tjin is working on a ’94 Toyota Land Cruiser for submission to the SEMA Battle of the Builders competition. So far, the GEN VI: 80-Series SUV maintains the majority of its rugged good looks (including an OEM factory grille), but Tjin never fails to impress with his clean and stylish builds. Watch the video to learn more about what makes this build unique:


Visit the SEMA Show YouTube Channel for more videos and builder interviews, and subscribe so you don’t miss new videos leading up to the 2019 SEMA Show.

Thu, 08/01/2019 - 13:17

SEMA News—August 2019

INDUSTRY NEWS

Photos courtesy SpiedBilde, Brian Williams. Reuse or reproduction without the copyright holder’s consent is prohibited.

Wrangler 3.0 EcoDiesel

This is the long-rumored (U.S. market) Jeep Wrangler 3.0L EcoDiesel, which is finally becoming a reality. According to Jeep, only Wrangler Unlimited models will offer the EcoDiesel V6’s 260 hp and 442 lb.-ft. of torque as a powertrain option.

Engine Stop-Start technology will be featured on EcoDiesel models, and the powerplant will be mated to a ZF-sourced eight-speed automatic transmission. According to the Mopar Insiders website, “The updated EcoDiesel will implement new turbocharger technology featuring a low-friction bearing, which is designed for low-end and transient performance.”

Expect an official debut in the coming months, with an on-sale date sometime in November.

Wrangler
Wrangler

’21 Ford F-150

This is a first look at the ’21 Ford F-150, with the redesign likely to focus on styling and engine changes.

Ford has been working on an F-150 hybrid that is likely to be introduced with the new model, along with a plug-in hybrid. A full EV model could follow.

Most models should get EcoBoost engines with upgrades over the current versions. The recently introduced V6 turbodiesel could return, and the naturally aspirated V6 and V8 engines could be culled due to economy and customer-demand concerns. A new 4.8L V8 may replace the current 5.0L, although turbocharging the EcoBoost V6 models remains unconfirmed.

Expect to see the redesigned F-150 sometime next year, with production starting in late 2020.



F-150
F-150

Dodge Charger Widebody

This Charger Widebody prototype appears to be the Scat Pack variant.

Back in March, Dodge brought a design concept for the Charger widebody to Spring Fest (SF14) in Pomona, California. There have been a few prototypes since then, but they’ve all seemed identical to the concept shown at SF14. This prototype looks identical to the concept shown but features the original multi-spoke wheel design featured on the SRT392 and R/T Scat Pack with the Dynamics Package.

After catching this prototype, Dodge is expected to offer a similar approach to that of the Challenger Widebody (multi-trim application). It’s rumored that the Charger Widebody will make its official debut at The Woodward Dream Cruise in August.

Dodge
Dodge
Thu, 08/01/2019 - 13:17

SEMA News—August 2019

INDUSTRY NEWS

Photos courtesy SpiedBilde, Brian Williams. Reuse or reproduction without the copyright holder’s consent is prohibited.

Wrangler 3.0 EcoDiesel

This is the long-rumored (U.S. market) Jeep Wrangler 3.0L EcoDiesel, which is finally becoming a reality. According to Jeep, only Wrangler Unlimited models will offer the EcoDiesel V6’s 260 hp and 442 lb.-ft. of torque as a powertrain option.

Engine Stop-Start technology will be featured on EcoDiesel models, and the powerplant will be mated to a ZF-sourced eight-speed automatic transmission. According to the Mopar Insiders website, “The updated EcoDiesel will implement new turbocharger technology featuring a low-friction bearing, which is designed for low-end and transient performance.”

Expect an official debut in the coming months, with an on-sale date sometime in November.

Wrangler
Wrangler

’21 Ford F-150

This is a first look at the ’21 Ford F-150, with the redesign likely to focus on styling and engine changes.

Ford has been working on an F-150 hybrid that is likely to be introduced with the new model, along with a plug-in hybrid. A full EV model could follow.

Most models should get EcoBoost engines with upgrades over the current versions. The recently introduced V6 turbodiesel could return, and the naturally aspirated V6 and V8 engines could be culled due to economy and customer-demand concerns. A new 4.8L V8 may replace the current 5.0L, although turbocharging the EcoBoost V6 models remains unconfirmed.

Expect to see the redesigned F-150 sometime next year, with production starting in late 2020.



F-150
F-150

Dodge Charger Widebody

This Charger Widebody prototype appears to be the Scat Pack variant.

Back in March, Dodge brought a design concept for the Charger widebody to Spring Fest (SF14) in Pomona, California. There have been a few prototypes since then, but they’ve all seemed identical to the concept shown at SF14. This prototype looks identical to the concept shown but features the original multi-spoke wheel design featured on the SRT392 and R/T Scat Pack with the Dynamics Package.

After catching this prototype, Dodge is expected to offer a similar approach to that of the Challenger Widebody (multi-trim application). It’s rumored that the Charger Widebody will make its official debut at The Woodward Dream Cruise in August.

Dodge
Dodge
Thu, 08/01/2019 - 13:17

SEMA News—August 2019

INDUSTRY NEWS

Photos courtesy SpiedBilde, Brian Williams. Reuse or reproduction without the copyright holder’s consent is prohibited.

Wrangler 3.0 EcoDiesel

This is the long-rumored (U.S. market) Jeep Wrangler 3.0L EcoDiesel, which is finally becoming a reality. According to Jeep, only Wrangler Unlimited models will offer the EcoDiesel V6’s 260 hp and 442 lb.-ft. of torque as a powertrain option.

Engine Stop-Start technology will be featured on EcoDiesel models, and the powerplant will be mated to a ZF-sourced eight-speed automatic transmission. According to the Mopar Insiders website, “The updated EcoDiesel will implement new turbocharger technology featuring a low-friction bearing, which is designed for low-end and transient performance.”

Expect an official debut in the coming months, with an on-sale date sometime in November.

Wrangler
Wrangler

’21 Ford F-150

This is a first look at the ’21 Ford F-150, with the redesign likely to focus on styling and engine changes.

Ford has been working on an F-150 hybrid that is likely to be introduced with the new model, along with a plug-in hybrid. A full EV model could follow.

Most models should get EcoBoost engines with upgrades over the current versions. The recently introduced V6 turbodiesel could return, and the naturally aspirated V6 and V8 engines could be culled due to economy and customer-demand concerns. A new 4.8L V8 may replace the current 5.0L, although turbocharging the EcoBoost V6 models remains unconfirmed.

Expect to see the redesigned F-150 sometime next year, with production starting in late 2020.



F-150
F-150

Dodge Charger Widebody

This Charger Widebody prototype appears to be the Scat Pack variant.

Back in March, Dodge brought a design concept for the Charger widebody to Spring Fest (SF14) in Pomona, California. There have been a few prototypes since then, but they’ve all seemed identical to the concept shown at SF14. This prototype looks identical to the concept shown but features the original multi-spoke wheel design featured on the SRT392 and R/T Scat Pack with the Dynamics Package.

After catching this prototype, Dodge is expected to offer a similar approach to that of the Challenger Widebody (multi-trim application). It’s rumored that the Charger Widebody will make its official debut at The Woodward Dream Cruise in August.

Dodge
Dodge
Thu, 08/01/2019 - 13:17

SEMA News—August 2019

INDUSTRY NEWS

Photos courtesy SpiedBilde, Brian Williams. Reuse or reproduction without the copyright holder’s consent is prohibited.

Wrangler 3.0 EcoDiesel

This is the long-rumored (U.S. market) Jeep Wrangler 3.0L EcoDiesel, which is finally becoming a reality. According to Jeep, only Wrangler Unlimited models will offer the EcoDiesel V6’s 260 hp and 442 lb.-ft. of torque as a powertrain option.

Engine Stop-Start technology will be featured on EcoDiesel models, and the powerplant will be mated to a ZF-sourced eight-speed automatic transmission. According to the Mopar Insiders website, “The updated EcoDiesel will implement new turbocharger technology featuring a low-friction bearing, which is designed for low-end and transient performance.”

Expect an official debut in the coming months, with an on-sale date sometime in November.

Wrangler
Wrangler

’21 Ford F-150

This is a first look at the ’21 Ford F-150, with the redesign likely to focus on styling and engine changes.

Ford has been working on an F-150 hybrid that is likely to be introduced with the new model, along with a plug-in hybrid. A full EV model could follow.

Most models should get EcoBoost engines with upgrades over the current versions. The recently introduced V6 turbodiesel could return, and the naturally aspirated V6 and V8 engines could be culled due to economy and customer-demand concerns. A new 4.8L V8 may replace the current 5.0L, although turbocharging the EcoBoost V6 models remains unconfirmed.

Expect to see the redesigned F-150 sometime next year, with production starting in late 2020.



F-150
F-150

Dodge Charger Widebody

This Charger Widebody prototype appears to be the Scat Pack variant.

Back in March, Dodge brought a design concept for the Charger widebody to Spring Fest (SF14) in Pomona, California. There have been a few prototypes since then, but they’ve all seemed identical to the concept shown at SF14. This prototype looks identical to the concept shown but features the original multi-spoke wheel design featured on the SRT392 and R/T Scat Pack with the Dynamics Package.

After catching this prototype, Dodge is expected to offer a similar approach to that of the Challenger Widebody (multi-trim application). It’s rumored that the Charger Widebody will make its official debut at The Woodward Dream Cruise in August.

Dodge
Dodge
Thu, 08/01/2019 - 13:15

SEMA News—August 2019

LEGISLATIVE AND TECHNICAL AFFAIRS

Most States Now Require Remote Sellers to Collect Sales Tax

By Stuart Gosswein

TaxCompanies should assume that economic nexus is here to stay following last year’s South Dakota vs. Wayfair Supreme Court decision and plan accordingly. Nevertheless, for many small- and medium-size companies, there may be no sales tax exposure given current state tax thresholds.

Companies without any physical presence in a state can now be required to collect sales tax based on their sales volume. In June 2018, the U.S. Supreme Court ruled in favor of a South Dakota state law requiring remote sellers to collect sales tax. (The term “remote” applies to internet, catalog and telephone sales, along with other types of transactions.) The court overturned the 1992 Quill decision, which required a physical presence to create “substantial nexus,” thereby allowing state sales tax collections.

A company can now have “economic nexus” in a state without otherwise having a physical presence. While granting South Dakota the right to require tax collections based on the volume of sales into the state, the court did not specifically rule on what amount of sales triggers an economic presence. Rather, it sent the South Dakota vs. Wayfair case back to a lower court to address the issue of whether the state law placed an undue burden on interstate commerce. The parties (Wayfair, Overstock and Newegg) then settled out of court in October 2018.

While the question of “undue burden” is technically unsettled, the Supreme Court ruling provided guidance when it deemed the South Dakota law as setting a sensible small-business safe harbor. The South Dakota law established a small-business exemption for retailers with less than $100,000 or 200 transactions in annual sales.

The court noted that the law provided small-business sellers with a reasonable exemption and prohibited retroactive collection. The court also observed that South Dakota is part of the Streamlined Sales and Use Tax Agreement (SSUTA). The SSUTA is intended to address tax collection burdens by creating a single, state-level tax administration, simplified tax rates and tax returns, uniform definitions, a central electronic registration system for all member states, and the availability of free tax administration software. (There are currently 23 participating SSUTA states in addition to Washington, D.C. For more information, visit
www.streamlinedsalestax.org.)

Economic nexus for remote sellers is based on sales revenue or the number of transactions or both. Companies should assume that economic nexus is here to stay following last year’s Supreme Court decision and plan accordingly. The court decision has made it less likely that the U.S. Congress will address the issue through federal legislation.

States have been eager to collect sales tax revenues for years and have been quick to enact laws and update regulations following the court ruling. Since the court indicated that the thresholds set under the South Dakota law seemed reasonable ($100,000 or 200 transactions), many states have adopted the same thresholds or are setting higher levels.

How Should Companies Respond to the New
Developments Governing State Sales Tax?

First, does your company exceed the threshold for remote sales tax nexus? For most states, the threshold is relatively high: $100,000 or 200 transactions in annual sales. For many small and medium-size companies, there may be no exposure.

If your company does meet a state’s economic nexus threshold, should a company immediately register, collect and remit the taxes? Not necessarily.

For all companies, this is a time to step back and review all potential liabilities. For example, is there a chance that your company already had physical nexus and should have been collecting sales taxes due to the presence of a sales representative, a distribution or storage facility, or participation in a trade show? Some states also have economic franchise and other tax obligations. It is important to review the status of a company’s presence in a state before registering to collect sales tax.

Returning to the economic nexus threshold issue for remote sales, states may vary in how they are calculated. Revenues may be based on gross sales, retail sales or taxable sales. The number of transactions may encompass one agreement, multiple invoices, or monthly subscriptions. Each state will define when a taxable year has commenced when calculating whether the company is below or above the economic threshold. If a company is close to the exemption threshold for a specific state,
it should then review how the state calculates nexus.

All states have a formal or informal voluntary disclosure agreement (VDA) process for addressing tax liabilities. If a company determines that a tax exposure already exists but has not been paid, the company should take advantage of the VDA process since it limits the lookback period of tax liabilities (usually to three years), removes most if not all penalties, and sometimes reduces or eliminates interest. Caution: The VDA process is not always available once you have registered to collect sales tax, so there is an incentive for conducting a comprehensive tax-risk assessment before registering.

SEMA recommends that companies consult their accountant or tax professional regarding the issues raised.

The chart above shows the current out-of-state sales tax collection requirements, as of May 1, 2019 but please note that these requirements and still changing.

Current Out-of-State Sales Tax Collection Requirements, as of May 1, 2019:

StateSales tax collection start dateExemption for Minimum Sales
AlabamaOctober 1, 2018 $250,000 
AlaskaNo Sales Tax
ArizonaProposed$100,000 or 200 transactions
Arkansas July 1, 2019$100,000 or 200 transactions 
CaliforniaApril 1, 2019$500,000
ColoradoMay 31, 2019$100,000 or 200 transactions
Connecticut December 1, 2018 $250,000 or 200 transactions
DelawareNo Sales Tax
District of ColumbiaJanuary 1, 2019$100,000 or 200 transactions
FloridaProposed$100,000 or 200 transactions
GeorgiaJanuary 1, 2019$250,000 or 200 transactions
Hawaii July 1, 2018  $100,000 or 200 transactions
Idaho June 1, 2019$100,000 
Illinois October 1, 2018$100,000 or 200 transactions 
Indiana October 1, 2018 $100,000 or 200 transactions 
Iowa January 1, 2019  $100,000 
KansasProposed$100,000
KentuckyOctober 1, 2018 $100,000 or 200 transactions 
LouisianaEnforcement date TBD$100,000 or 200 transactions 
MaineJuly 1, 2018 $100,000 or 200 transactions 
MarylandOctober 1, 2018  $100,000 or 200 transactions 
MassachusettsOctober 1, 2017$500,000 or 100 transactions 
Michigan  October 1, 2018 $100,000 or 200 transactions 
Minnesota October 1, 2018 10 transactions totaling $100,000 or 100 retail transactions (rising to 200 transactions on October 1, 2019)
MississippiSeptember 1, 2018$250,000 
MissouriProposed$100,000 or 200 transactions
MontanaNo Sales Tax
Nebraska January 1, 2019  $100,000 or 200 transactions
Nevada  November 1, 2018 $100,000 or 200 transactions 
New HampshireNo Sales Tax
New JerseyNovember 1, 2018 $100,000 or 200 transactions 
New MexicoJuly 1, 2019 $100,000
New YorkJanuary 15, 2019$300,000 or 200 transactions 
North CarolinaNovember 1, 2018 $100,000 or 200 transactions 
North DakotaOctober 1, 2018 $100,000 or 200 transactions 
Ohio    January 1, 2018$500,000
Oklahoma  November 1, 2019$100,000 
OregonNo Sales Tax
Pennsylvania April 1, 2018  $100,000 
Rhode IslandAugust 17, 2017$100,000 or 200 transactions 
South CarolinaNovember 1, 2018 $100,000 
South Dakota November 1, 2018$100,000 or 200 transactions 
TennesseeProposed$500,000 
Texas January 1, 2019 $500,000 
Utah  January 1, 2019 $100,000 or 200 transactions 
Vermont  July 1, 2018 $100,000 or 200 transactions 
VirginiaJuly 1, 2019$100,000 or 200 transactions 
WashingtonOctober 1, 2018$100,000 or 200 transactions
West Virginia January 1, 2019$100,000 or 200 transactions 
WisconsinOctober 1, 2018  $100,000 or 200 transactions 
WyomingFebruary 1, 2019$100,000 or 200 transactions