U.S. Sales Tax Review and Potential Sales Tax Changes to Your Invoices Beginning January 2019

December 12, 2018

Dear Customer:

The Verisk sales tax department is performing a periodic review of the overall sales tax nexus and filing requirements for all Verisk companies in accordance with new sales and use tax laws in state taxing jurisdictions throughout the United States.

As part of the periodic review, the sales tax department will determine whether certain Verisk companies will need to be registered to collect sales tax in additional states as the result of the U.S. Supreme Court’s (“USC”) decision in South Dakota v. Wayfair earlier this year. The USC decision ruled that it’s no longer required for a company to have a physical presence in a state for sales tax registration and collection purposes, and merely having sufficient “economic nexus” with the state will require remote sellers to register and collect the state’s sales tax. Shortly after the decision, numerous states enacted economic nexus standards based on a threshold of sales to in-state customers (typically $100,000 of sales).

If, upon conclusion of the review, the sales tax department finds that a Verisk company is legally required to collect sales tax on its taxable sales into your state, the Verisk company will register with the state jurisdiction to collect sales tax beginning January 2019.

The sales tax amount will be calculated in accordance with the local tax jurisdiction’s laws for your specific location and the nature of the products and services you purchased. The Verisk company will collect and remit these taxes to the appropriate taxing authorities, as required by law.

If you have any questions, please refer to the Billed U.S. Sales Tax: Frequently Asked Questions and General Sales Taxability Matrix by state.

If you have further questions, please don’t hesitate to contact info@verisk.com or call 1-800-888-4476.

Verisk Analytics, Inc., and Subsidiaries