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, including Washington State, 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. On August 3, 2018, the Washington State Department of Revenue announced that beginning October 1, 2018 remote sellers making either $100,000 or more in sales or 200 transactions with Washington purchasers must register their business and collect/submit retail sales/use tax on those sales.
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 email SALT@pscpa.com to have it sent to you.
Sales Tax Economic Nexus for Remote Sellers (as of August 15, 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||N/A||N/A||Previous calendar year||10/1/2018||Ala. Admin. Code § 810-6-2-.90.03|
|Connecticut||Yes||250,000||200||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||200||One||Previous or current calendar year||1/1/2019||Ga. Code Ann. § 48-8-30(c.2)(2)|
|Hawaii||Yes||100,000||200||One||Current or preceding calendar year||7/1/2018||Hawaii Dept. of Taxation Announcements No. 2018-10 (06/27/2018)|
|Illinois||Yes||100,000||200||One||Current or preceding calendar year||10/1/2018||ILCS Chapter 35 § 105/2|
|Indiana||Yes||100,000||200||One||Current or preceding calendar year||10/1/2018||Ind. Code § 6-2.5-2-1(c)|
|Iowa||Yes||100,000||200||One||Current or preceding calendar year||1/1/2019||Iowa Code § 423.14A as enacted by S. F. 2417 (2018)|
|Kentucky||Yes||100,000||200||One||Current or preceding calendar year||10/1/2018||Ky. Rev. Stat. Ann. § 139.340(2)(g)|
|Louisiana||Yes||100,000||200||One||Current or preceding calendar year||1/1/2019||La. Rev. Stat Ann § 47:301(4)(m)(i), as added by 2018 La. H.B. 17|
|Maine||Yes||100,000||200||One||Current or preceding calendar year||10/1/2017||Me. Rev. Stat. Ann. 36 § 1951-B(3)|
|Massachusetts||Yes||500,000||100||Both||Previous calendar year||10/1/2017||Mass. Regs. Code tit. 830, §64H.1.7|
|Michigan||Yes||100,000||200||One||Previous calendar year||10/1/2018||Michigan Revenue Administrative Bulletin 2018-16|
|Minnesota**||Yes||100,000 in at least 10 transactions||100||One||Previous 12 months||10/1/2018||Minn. Stat. §297A.66|
|Mississippi||Yes||250,000||N/A||N/A||Previous 12 months||9/1/2019||Miss. Administrative Code § 35.IV.3.09(100)|
|Nebraska||Yes||200,000||200||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)|
|New Jersey||Yes||100,000||200||One||Current or prior calendar year||10/1/2018||Notice, New Jersey Division of Taxation, August 14, 2015|
|New York||Yes||300,000||100||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||200||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||200||One||Previous calendar year||10/1/2018||N.D. Cent. Code § 57-39.2-02.2|
|Ohio***||Yes||500,000||N/A||N/A||Current or preceding calendar year||1/1/2018||Ohio Information Release ST 2001-01|
|Oklahoma||Yes||10,000||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||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||200||One||Preceding 12 calendar year||8/17/2017 or notification and reporting requirements||R.I. Gen Laws § 44-18.2-3|
|South Dakota||Yes||100,000||200||One||TBD||S.D. Codified Laws Ann. §10-64-2|
|Tennessee||Yes||500,000||N/A||N/A||Previous 12 months||TBD||Tenn. Comp. R. & Regs. § 1320-05-01-.129(2)|
|Utah||Yes||100,000||200||One||1/1/2019||2018 Utah S.B. 2001|
|Vermont||Yes||100,000||200||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||200||One||Current or prior year||10/1/2018||Rev. Code of Wash. 82.32.733|
|Wisconsin||Yes||100,000||200||One||Annually||10/1/2018||Remote Sellers – Wayfair Decision (Juy 5, 2018)|
|Wyoming||Yes||100,000||200||One||Current or preceding calendar year||TBD||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.