On June 21, 2018, The Supreme Court ruled in favor of South Dakota, granting the state authority to impose sales tax obligations on out-of-state transactions without requiring physical presence in the state. Since the ruling, several states have responded by implementing legislation to adopt economic nexus provisions thereby requiring remote sellers to collect sales tax without having a physical presence in the state.
To help you navigate the ever-changing nexus landscape for sales tax, please use the Sales Tax Economic Nexus for Remote Sellers chart below to help you identify which states have adopted economic nexus provisions. We also have an Economic Nexus Evaluator Tool to make an initial analysis of your economic nexus footprint. Please fill out this form to have it emailed to you.
|Economic Nexus Enforcement Dates at a Glance
|2017||Jan 1, 2018||April 1, 2018||July 1, 2018||Sept 1, 2018||Oct 1, 2018||Nov 1, 2018||Dec 1, 2018||Jan 1, 2019||Feb. 1, 2019||April 1, 2019|
|July 1– Tennessee (stayed)
Oct 1– Massachusetts
|Mississippi||Alabama, Illinois, Indiana, Kentucky, Maryland, Michigan, Minnesota, Nevada, North Dakota, Washington, Wisconsin||New Jersey, North Carolina, South Carolina, South Dakota||Colorado*, Connecticut||Georgia, Iowa, Louisiana*,
*Colorado and Louisiana are allowing for a grace period to begin reporting and collecting. Sales tax collection in those states is currently voluntary until such grace period ends. In Colorado, the grace period ends May 31, 2019. Louisiana has yet to determine the end of the grace period.
|Sales Tax Economic Nexus for Remote Sellers (as of December 12, 2018)*|
|State||Economic Nexus||Sales Threshold||Transaction Threshold||Does one or both thresholds need to be met?||Nexus Time Frame||Effective Date||State Guidance|
|Alabama||Yes||$250,000 in retail sales||N/A||N/A||Previous calendar year’s sales||10/1/2018||10/1/2018 – Economic Nexus; 01/01/2019 – Marketplace provisions|
|California||Yes||$100,000 in sales||200 transactions||One||Preceding or current calendar year||4/1/2019||Special Notice New Use Tax Collection Requirements for Out-of_State Retailers Based on Sales into California effective April 1, 2019|
|Colorado||Yes||$100,000 in sales||200 transactions||One||Previous calendar year or the current calendar year||Voluntary – 12/1/2018; grace period through||News Release Colorado to require online retailers to collect sales tax (September 11, 2018)|
|Connecticut||Yes||$250,000 in gross receipts||200 retail sales||Both||12-month period ending on the September 30th immediately preceding the monthly or quarterly period for which liability for tax is determined.||12/1/2018||Conn. Gen. Stat. § 12-407(a)(12) and (15)|
|District of Columbia||No|
|Georgia||Yes||$250,000 in retail sales||200 separate retail sales||One||Previous or current calendar year||1/1/2019||Georgia Dept. of Rev., Policy Bulletin SUT-2018-07 (Oct. 1, 2018)|
|Hawaii||Yes||$100,000 in gross income||200 separate transactions||One||Current or preceding calendar year||7/1/2018||Hawaii Dept. of Taxation Announcements No. 2018-10 (06/27/2018)|
|Illinois||Yes||$100,000 in gross receipts||200 separate transactions||One||Current or preceding 12-month period; must evaluate quarterly||10/1/2018||ILCS Chapter 35 § 105/2|
|Indiana||Yes||$100,000 in retail sales||200 separate transactions||One||Current or preceding calendar year||10/1/2018||Ind. Code § 6-2.5-2-1(c)|
|Iowa||Yes||$100,000 in retail sales||200 separate retail sales||One||Current or preceding calendar year||1/1/2019||Iowa Code § 423.14A as enacted by S. F. 2417 (2018)|
|Kentucky||Yes||$100,000 in retail sales||200 separate retail sales||One||Current or preceding calendar year||10/1/2018||Ky. Rev. Stat. Ann. § 139.340(2)(g)|
|Louisiana||Yes||$100,000 in gross revenue||200 separate transactions||One||Current or preceding calendar year||Voluntarily – 1/1/2019; Enforcement to begin sometime TBD 2019||La. Rev. Stat Ann § 47:301(4)(m)(i), as added by 2018 La. H.B. 17|
|Maine||Yes||$100,000 in gross revenue||200 separate transactions||One||Current or preceding calendar year||7/1/2018||Me. Rev. Stat. Ann. 36 § 1951-B(3)|
|Maryland||Yes||$100,000 in gross revenue||200 separate transactions||One||10/1/2018||COMAR 03.06.01.33 Out-of-State Vendor, Md. Cmptrlr|
|Massachusetts||Yes||$500,000 in sales||100 transactions||Both||Previous calendar year||10/1/2017||Mass. Regs. Code tit. 830, §64H.1.7|
|Michigan||Yes||$100,000 in sales||200 separate transactions||One||Previous calendar year||10/1/2018||Michigan Revenue Administrative Bulletin 2018-16|
|Minnesota**||Yes||$100,000 in retail sales at least 10 transactions||100 retail sales||One||Previous 12 months||10/1/2018||Minn. Stat. §297A.66|
|Mississippi||Yes||$250,000 in sales||N/A||N/A||Previous 12 months||9/1/2018||Miss. Administrative Code § 35.IV.3.09(100)|
|Nebraska||Yes||$100,000 in sales||200 separate transactions||One||Annually||1/1/2019||Statement from the Nebraska Department of Revenue Regarding the South Dakota v. Wayfair United States Supreme Court Decision (July 27, 2018)|
|Nevada||Yes||$100,000 in retail sales||200 retail sales||One||Immediately preceding calendar year or the current calendar year||10/1/2018||Nevada Dept. of Taxn., Statement from
Taxation Director Bill Anderson
Concerning Approval of New Out-of-State
Seller Sales Tax Requirements (Sept. 27,
|New Jersey||Yes||$100,000 in gross revenue||200 separate transactions||One||Current or prior calendar year||11/1/2018||Notice, New Jersey Division of Taxation, August 14, 2015|
|New York||Yes||$300,000 in gross receipts||100 sales||Both||Immediately preceding four quarter periods ending on the last day of February, May, August, and November||Currently unenforced||N.Y. Tax Law §1101(b)(8)|
|North Carolina||Yes||$100,000 in gross sales||200 separate transactions||One||Previous or current calendar year||11/1/2018||North Carolina Sales and Use Tax Directive SD-18-6; N.C. Gen. Stat. §105-164|
|North Dakota||Yes||$100,000 in gross sales||20200 separate transactions||One||Previous calendar year||10/1/2018||N.D. Cent. Code § 57-39.2-02.2|
|Ohio***||Yes||$500,000 in gross receipts||N/A||N/A||Current or preceding calendar year||1/1/2018||Ohio Information Release ST 2001-01|
|Oklahoma||Yes||$10,000 in retail sales||N/A||One||Preceding 12 calendar year||7/1/2018 or notification and reporting requirements||Okla. Stat. Ann. Tit. 68, § 1392, as added by HB 1019, Laws of 2018|
|Pennsylvania||Yes||$10,000 in retail sales||N/A||One||Preceding 12 calendar year||4/1/2018 or notification and reporting requirements||Pa. Dept. of Rev., Remote Sellers|
|Rhode Island||Yes||$100,000 in gross revenue||200 separate transactions||One||Preceding 12 calendar year||8/17/2017 or notification and reporting requirements||R.I. Gen Laws § 44-18.2-3|
|South Carolina||Yes||$100,000 in gross revenue||N/A||N/A||Previous or current calendar year||11/1/2018||SC Revenue Ruling #18-4|
|South Dakota||Yes||$100,000 in gross revenue||200 separate transactions||One||Previous of current calendar year||11/1/2018- except for defendants in the South Dakota v. Wayfair case; 03/01/2019 – Marketplace provisions||11/1/2018- except for defendants in the South Dakota v. Wayfair case; 03/01/2019 – Marketplace provisions|
|Tennessee||Yes||$500,000 in sales||N/A||N/A||Previous 12 months||7/1/2017 – litigation pending – enforcement stayed||Tenn. Comp. R. & Regs. § 1320-05-01-.129(2)|
|Utah||Yes||$100,000 in gross revenue||200 separate transactions||One||1/1/2019||2018 Utah S.B. 2001|
|Vermont||Yes||$100,000 in sales||200 individual transactions||One||Any 12-month period preceding the monthly tax period for determining sales and use tax liability.||7/1/2018||Vt. Stat. Ann. 32 § 9701(9)(F) and (G)|
|Washington****||Yes||$100,000 in gross retail sales*****||200 retail transactions||One||Current or prior year||10/1/2018 unless meets notification requirements threshold||10/1/2018 or comply with current notification requirements if $10,000 in sales*****|
|West Virginia||Yes||$100,000 in gross sales||200 separate transactions||One||During calendar year 2018||1/1/2019||West Virginia Administrative Notice 2018-18 (October 1, 2018)|
|Wisconsin||Yes||$100,000 in sales||200 separate transactions||One||Annually||10/1/2018||Remote Sellers – Wayfair Decision (July 5, 2018)|
|Wyoming||Yes||$100,000 in gross revenue||200 separate transactions||One||Current or preceding calendar year||2/1/2019||Wyo. Stat. § 39-15-501|
*Does not include any proposed legislation or information regarding notice requirements for marketplace facilitators.
**Makes 10 or more retail sales totaling more than $100,000 or 100 or more retail sales and systematic solicitation of sales in the state. Remote sellers are not required to collect sales tax in Minnesota when a Marketplace Provider is collecting and remitting.
***Under Ohio law, an out-of-state vendor that uses Ohio software to make sales or that has relationships with content distribution networks in Ohio and has gross receipts of at least $500,000 from sales of tangible personal property to Ohio customers is deemed to have nexus.
**** Beginning July 1, 2017, businesses with more than $267,000 of yearly gross receipts sourced to Washington in 2017 ($285,000 in 2018) or at least 25 percent of total yearly gross receipts sourced to Washington has nexus for retailing Business and Occupation (B&O) tax.
*****Beginning January 1, 2018, remote sellers and marketplace facilitators making $10,000 or more in retail sales to Washington purchasers must either 1) register their business, and collect and submit sales/use tax on sales to Washington purchasers; or 2) follow the use tax notice and reporting requirements. Once a business exceeds the $100,000 in retail sales, or 200 transactions as of October 1, 2018, the business no longer has a choice and must register and collect retail sales/use tax.