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 
Alaska N/A
Arizona No
Arkansas No
California No
Colorado No
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)
Delaware N/A
District of Columbia No
Florida 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)
Idaho No
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)
Kansas No
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) 
Maryland No
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) 
Missouri No
Montana N/A
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)
Nevada No Proposed
New Hampshire N/A
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 Mexico No
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
Oregon N/A
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 Carolina No
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)
Texas No
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)
Virginia No
Washington**** Yes 100,000 200 One Current or prior year 10/1/2018 Rev. Code of Wash. 82.32.733
West Virginia No
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.