Sales Tax by State: Economic Nexus Laws
Most online sellers are familiar with the term “sales tax nexus” from the Quill v. North Dakota Supreme Court case, which established that retailers must have a presence in a state before being required to collect sales tax from buyers there.
However, the precedent set by Quill was overturned by the Supreme Court’s ruling in South Dakota v. Wayfair. Now, both physical presence (like a location, employee, or inventory) and “economic” presence in a state create sales tax nexus.
This means that even without a physical presence, if you exceed a state’s economic threshold for total revenue or number of transactions, you’re legally obligated to collect and remit sales tax in that state.
What are economic nexus laws?
To challenge the Quill precedent, some states preemptively passed laws stating that if an online seller surpasses a certain sales amount or number of transactions in their state, they must collect sales tax, regardless of physical presence.
These laws conflicted with the Supreme Court’s stance at the time. However, the South Dakota v. Wayfair ruling has now allowed states to enforce these economic nexus laws.
State laws on economic nexus differ significantly. Sales thresholds range from $10,000 to $500,000, and some states have no transaction threshold at all.
How did we get here?
Ohio pioneered the concept of economic nexus with its 2005 “Commercial Activity Tax” (CAT) law. This law required any retailer with over $500,000 in sales to Ohio customers to comply with Ohio’s sales tax collection laws, regardless of having a physical presence like an employee, location, or inventory in the state. The only criterion was exceeding $500,000 in sales to Ohio buyers.
Following Ohio’s lead, other states began enacting similar laws, often targeting eCommerce giants like Amazon. Until recently, Amazon did not collect sales tax in all U.S. states. However, it eventually started collecting sales tax nationwide. Despite this, states continue to pursue tax revenue by enforcing these laws on other retailers.
Are economic nexus laws even legal?
The answer is “Yes.” South Dakota enacted a bold economic nexus law requiring any retailer with sales over $100,000 into the state to collect and remit South Dakota sales tax. They even issued notices of lawsuit to Newegg, Overstock.com, Systemax, and Wayfair, believing these vendors met the threshold but were not collecting sales tax. Newegg, Overstock.com, and Wayfair contested this in court, leading to a Supreme Court decision favoring South Dakota.
Following this ruling, states’ economic nexus laws are now enforceable, potentially obligating more online sellers to collect sales tax in multiple states.
What do economic nexus laws mean for online sellers?
Many online sellers have now begun collecting sales tax in states with nexus laws, either due to compliance or strategic decisions. Some opted to wait until the Supreme Court decision in South Dakota v. Wayfair, hoping the Quill precedent would hold. Now that economic nexus is established without physical presence requirements, states can enforce sales tax collection on retailers surpassing their thresholds.
While this “sales tax Wild West” unfolds, there’s a possibility Congress might intervene with national legislation on sales tax. For sellers meeting economic nexus criteria in various states, consulting with a qualified sales tax expert is advisable to navigate the evolving landscape effectively.
How are economic nexus laws different from notice and report laws?
“Notice and report” laws are state regulations requiring online sellers without physical presence in a state to either collect sales tax or submit extensive reports to the state and their customers if they surpass specific revenue or transaction thresholds. While these laws resemble economic nexus laws, there are notable distinctions.
The key difference lies in the timeline of implementation: notice and report laws, such as Colorado’s starting from July 1, 2017, were legally enforceable before economic nexus laws, which only gained Constitutional validity after the Supreme Court’s ruling in South Dakota v. Wayfair on June 21, 2018.
For sellers, this distinction is crucial, especially regarding compliance with sales tax regulations. Currently, no states have attempted retroactive application of economic nexus laws to online sellers. This means if you are newly navigating economic nexus requirements, you have time to achieve compliance. However, if you haven’t adhered to notice and report laws in states where they apply, seeking guidance from a sales tax expert is advisable to manage potential repercussions, given these laws have been enforceable for several months.
Economic Nexus Laws, by State
Please note: The legal landscape in this area is evolving rapidly, so while we strive to provide current information, this post should be used as a general reference. For specific questions regarding how economic nexus affects your business, it is advisable to consult with a sales tax expert.
Additionally, throughout this article, we refer to this tax as “sales tax” for simplicity. However, in some cases, out-of-state sellers are technically required to collect “use tax.” Use tax generally mirrors the rate of sales tax and refers to the tax collected by a retailer based out-of-state.
Alabama
Threshold: $250,000/year based on the previous calendar year’s sales
Summary: According to state regulations, sellers who surpass the $250,000 sales threshold must obtain an Alabama sales tax permit, charge sales tax on purchases shipped to Alabama, and submit the collected sales tax to the state.
You can read the text of Alabama’s economic nexus law here.
You can read guidance on economic nexus for sellers from the Alabama Department of Revenue here.
Effective date: January 1, 2016
Alaska
Threshold: $100,000 or more in sales to the state, or 200 or more sales transactions into the state in the current or previous calendar year
Summary: The law mandates that remote sellers and marketplace facilitators must register with the commission, and collect and remit tax on their sales into various localities in Alaska if they have annual gross receipts of $100,000 or more from sales, or conduct 200 or more sales annually into the state.
Full text: Read Alaska’s remote seller sales tax code here
Effective date: Alaska’s economic nexus law diverges from others in its approach. The Alaska Remote Seller Sales Tax Code, enacted on January 6, 2020, allows local jurisdictions to individually opt into the code. Once a jurisdiction adopts the code, businesses must start collecting sales tax from Alaska buyers in that jurisdiction within 30 days.
Arizona
Threshold: In 2020 the threshold will be $150,000, and then $100,000 in 2021 and thereafter.
Summary: According to state law, sellers who surpass the gross sales threshold must register for an Arizona sales tax permit to collect transaction privilege tax (TPT) on sales shipped to Arizona and remit the collected sales tax to the state. Arizona is notably the first state to employ a graduated approach for their economic nexus threshold.
Effective date: October 1, 2019
Arkansas
Threshold: 200 transactions or $100,000 within the previous or current year
Summary: According to state law, sellers who exceed either the gross sales or transaction number thresholds are mandated to register for an Arkansas sales tax permit. They must collect sales tax on sales that are shipped to Arkansas and subsequently remit the collected sales tax to the state.
Effective date: July 1, 2019
California
Threshold: $500,000/year in gross revenue on the previous or current calendar year’s sales
Summary: According to state law, remote sellers in California who surpass the $500,000 gross sales threshold must register for a California sales tax permit with the CDTFA. They are then obligated to collect sales tax on sales shipped to California and remit the collected sales tax to the state.
You can read more on the California guidance for remote sellers here.
Effective date: April 26, 2019
Colorado
Threshold: $100,000/year in gross revenue on the previous or current calendar year’s sales
Summary: According to state law, sellers who exceed the gross sales threshold are obligated to register for a Colorado sales tax permit, collect sales tax on sales shipped to Colorado, and remit the collected sales tax to the state.
You can read more on the Colorado guidance for remote sellers here.
Effective date: December 1, 2018
Connecticut
Threshold: $100,000 in gross receipts during the 12-month period;/year in gross revenue AND 200 or more separate transactions on the previous calendar year’s sales
Summary: According to state law, sellers who exceed both the gross sales and transaction number thresholds are required to register for a Connecticut sales tax permit, collect sales tax on sales shipped to Connecticut, and remit the collected sales tax to the state.
Effective date: December 1, 2018
Florida
Threshold: $100,000 in revenue from buyers in the state in the previous calendar year (excluding marketplace sales for individual sellers)
Summary: According to state regulations, sellers that meet Florida’s sales threshold must register for a Florida sales tax permit, collect sales tax on sales shipped into Florida, and remit the collected sales tax to the state.
You can read the text of the Florida economic nexus law here.
Effective date: July 1, 2021
Georgia
Threshold: $100,000/year in gross revenue, or makes sales into Georgia in more than 200 separate transactions in the previous or current calendar year
Summary: According to state guidelines, sellers who meet either the sales or transaction number thresholds must register for a Georgia sales tax permit, collect sales tax on sales shipped into Georgia, and remit the collected sales tax to the state.
You can read the text of Georgia’s economic nexus law here.
Effective date: January 1, 2019
Hawaii
Threshold: $100,000/year in gross revenue, or makes sales into Hawaii in more than 200 separate transactions in the previous or current calendar year
Summary: According to state regulations, sellers meeting either the sales or transaction number thresholds must register for a Hawaii sales tax permit, collect sales tax on sales that are shipped into Hawaii, and remit the collected sales tax to the state.
You can read the text of Hawaii’s economic nexus law here.
Effective date: July 1, 2018
Idaho
Threshold: $100,000 of sales made into Idaho in the previous or current calendar year
Summary: According to state regulations, sellers meeting either the sales or transaction number thresholds must register for an Idaho sales tax permit, collect sales tax on shipments into Idaho, and remit the collected sales tax to the state.
You can read the text of Idaho’s economic nexus law here.
Effective date: June 1, 2019
Illinois
Threshold: $100,000/year in gross revenue, or makes sales into Illinois in more than 200 separate transactions in the previous twelve months
Summary: Illinois state law mandates that sellers meeting either the sales or transaction number thresholds must obtain an Illinois sales tax permit, collect sales tax on sales shipped into Illinois, and remit the collected sales tax to the state.
You can read the text of Illinois economic nexus law here.
Effective date: October 1, 2018
Indiana
Threshold: $100,000 in gross revenue in the previous calendar year
Summary: As per state law, sellers surpassing the gross sales threshold must register for an Indiana sales tax permit, collect sales tax on shipments to Indiana, and remit the collected sales tax to the state.
You can read the text of Indiana’s economic nexus law here, and a summary on p. 13 here. Indiana removed the 200 transaction threshold effective March 29, 2024.
Effective date: October 1, 2018
Iowa
Threshold: $100,000/year in gross revenue in the previous or current calendar year
Summary: According to state regulations, sellers meeting the sales thresholds must obtain an Iowa sales tax permit, collect sales tax on shipments to Iowa, and submit the collected sales tax to the state. For those below the threshold, obtaining an Iowa Retailer’s Use Tax (RUT) permit is optional. If you have already registered for RUT and exceed the economic threshold, you must cancel your RUT permit and register for an Iowa sales tax permit instead.
You can read the text of Iowa economic nexus law here.
You can read guidance on economic nexus from the Iowa Department of Revenue here.
Effective date: January 1, 2019
Kansas
Threshold: Beginning July 1, 2021, remote e-commerce sellers who fit the following criteria are considered to have Kansas economic nexus:
- More than $100,000 of cumulative gross receipts from sales to customers in the state for the period of January 1, 2021, through June 30, 2021 or
- More than $100,000 of cumulative gross receipts from sales to customers in the state during the current or immediately preceding calendar year
Summary: Kansas mandates that e-commerce sellers or marketplaces meeting the new criteria must obtain a Kansas sales tax permit and start collecting sales tax on transactions made to Kansas buyers.
You can read guidance on the text of Kansas economic nexus law here.
Effective date: July 1, 2021
Kentucky
Threshold: $100,000/year in gross revenue, or makes sales into Kentucky in more than 200 separate transactions in the previous or current calendar year
Summary: According to state regulations, sellers meeting either the sales or transaction number thresholds must register for a Kentucky sales tax permit, collect sales tax on sales shipped into Kentucky, and remit the collected sales tax to the state.
You can read the text of Kentucky economic nexus law here.
Effective date: July 1, 2018
Louisiana
Threshold: $100,000/year in gross revenue, or makes sales into Louisiana in more than 200 separate transactions in the previous or current calendar year
Summary: According to state regulations, sellers meeting either the sales or transaction number thresholds must register for a Louisiana sales tax permit, collect sales tax on sales shipped into Louisiana, and remit the collected sales tax to the state.
You can read the text of Louisiana economic nexus law here.
Effective date: July 1, 2020
Maine
Threshold: $100,000 in gross revenue in the previous calendar year or current calendar year. Maine dropped their transaction threshold, effective January 1, 2022.
Summary: According to Maine state law, sellers who exceed the gross sales threshold must register for a Maine sales tax permit, collect sales tax on sales shipped to Maine, and remit the collected sales tax to the state.
You can read all about Maine’s Revenue Service resources for remote sellers here.
Effective date: July 1, 2018
Maryland
Threshold: $100,000/year in gross revenue, or makes sales into Maryland in more than 200 separate transactions in the previous or current calendar year.
Summary: According to state regulations, sellers meeting either the sales or transaction number thresholds must obtain a Maryland sales tax permit, collect sales tax on shipments into Maryland, and remit the collected sales tax to the state.
You can read more details of Maryland economic nexus law here.
Effective date: October 1, 2018
Massachusetts
Threshold: $100,000 in sales over the preceding calendar year. The existing cookie nexus is $500,000 and 100 transactions in the previous or current calendar year.
Summary: According to state law, sellers who surpass the gross sales threshold must obtain a Massachusetts sales tax permit, collect sales tax on sales shipped to Massachusetts, and remit the collected sales tax to the state.
You can read Massachusetts’ economic nexus law here.
Effective date: October 1, 2019
Michigan
Threshold: $100,000 in gross revenue in the last calendar year or makes sales into Michigan in more than 200 separate transactions in the previous calendar year.
Summary: According to state law, sellers who exceed either the $100,000 sales threshold or the transaction number threshold must register for a Michigan sales tax permit, collect sales tax on sales shipped to Michigan, and remit the collected sales tax to the state.
You can read Michigan economic nexus law here.
Effective date: October 1, 2018
Minnesota
Threshold: $100,000 in gross revenue in the last 12 months or makes sales into Minnesota in more than 200 separate transactions in the previous 12 months.
Summary: According to state law, sellers who exceed either the $100,000 sales threshold or the transaction number threshold must register for a Minnesota sales tax permit, collect sales tax on sales shipped to Minnesota, and remit the collected sales tax to the state.
You can read the Minnesota economic nexus law here.
Effective date: October 1, 2019
Mississipp
Threshold: Sales into Mississippi that exceed $250,000 in the prior twelve months
Summary: Under state law, sellers surpassing the $250,000 threshold must register for a Mississippi sales tax permit, collect sales tax on shipments to Mississippi, and remit the collected sales tax to the state.
You can read Mississippi’s economic nexus laws here.
Effective date: December 1, 2017
Missouri
Threshold: Sales into Missouri that hit at least $100,00 in value in the previous 12-month period
Summary: Under Missouri’s economic nexus law, retailers who make at least $100,000 of retail sales to buyers in the state in the previous 12-month period must register and collect sales tax from Missouri buyers.
You can read Missouri’s economic nexus laws here.
Effective date: January 1, 2023
Nebraska
Threshold: Sales into Nebraska exceeding $100,000 or sales were made in 200 or more separate transactions in the current or last calendar year.
Summary: According to state regulations, sellers exceeding either the sales threshold or transaction number must register for a Nebraska sales tax permit, collect sales tax on sales shipped into Nebraska, and remit the collected sales tax to the state.
You can read about Nebraska’s economic nexus law here.
Effective date: January 1, 2019
Nevada
Threshold: $100,000/year in gross revenue the previous calendar year OR 200 or more separate transactions in the previous or current calendar year.
Summary: According to state regulations, sellers meeting either the sales or transaction number thresholds must obtain a Nevada sales tax permit, collect sales tax on sales shipped into Nevada, and remit the collected sales tax to the state.
You can read guidance on Nevada remote seller information here.
Effective date: October 1, 2018
New Jersey
Threshold: Sales of $100,000 in New Jersey, or more than 200 transactions in the state in the current or last calendar year.
Summary: According to state regulations, sellers who meet either the sales or transaction number thresholds must register for a New Jersey sales tax permit, collect sales tax on sales shipped into New Jersey, and remit the sales tax to the state.
You can read guidance on the text of New Jersey economic nexus law here.
Effective date: November 1, 2018 (Delayed from the previous date of October 1, 2018).
New Mexico
Threshold: $100,000 in annual gross revenue from sales in New Mexico in the last calendar year.
Summary: According to state regulations, remote sellers and marketplace facilitators must register for a New Mexico gross receipts tax permit and collect and remit gross receipts tax to the state if they meet the sales thresholds.
Full text: You can read guidance on the text of New Mexico economic nexus law here.
Effective date: July 1, 2019
New York
Threshold: $500,000 per year in gross revenue AND sales made into New York in more than 100 separate transactions in the last four quarters.
Summary: According to state regulations, sellers meeting both the sales and transaction number thresholds must register for a New York sales tax permit, collect sales tax on shipments into New York, and remit the sales tax to the state. The threshold increase for businesses without physical presence in New York applies retroactively from June 21, 2018, while the increase for marketplace providers is retroactive from June 1, 2019.
You can read guidance on the text of New York economic nexus law here.
Effective date: July 21, 2018
North Carolina
Threshold: $100,000/year in gross revenue, or makes sales into North Carolina in more than 200 separate transactions in the current or last calendar year.
Summary: Sellers meeting either the sales or transaction number thresholds in North Carolina must register for a North Carolina sales tax permit, collect sales tax on sales shipped into the state, and remit the collected sales tax to the state.
You can read about North Carolina’s economic nexus law here.
Effective date: November 1, 2018
North Dakota
Threshold: Sales into North Dakota exceeding $100,000 in the current or last calendar year.
Summary: Sellers who surpass the sales threshold in North Dakota are mandated to register for a North Dakota sales tax permit, collect sales tax on sales shipped into the state, and remit the collected sales tax to the state.
Small Seller Exception
North Dakota law provides an exception for small sellers, requiring remote sellers to collect sales tax only if their taxable sales into the state exceed $100,000 in the current or previous calendar year.
Note: Before July 1, 2019, North Dakota’s small seller exception also included a threshold of 200 or more separate transactions in the prior or current year. The transaction threshold was repealed effective July 1, 2019. Remote sellers who only met the transaction threshold in 2018 or 2019 must continue collecting North Dakota sales tax through June 30, 2019. After June 30, 2019, these remote sellers may cancel their North Dakota sales and use tax permit and stop collecting North Dakota sales tax.
You can read about North Dakota’s economic nexus law here.
You can find guidance on economic nexus from the North Dakota State Tax Commissioner here.
Effective date: October 1, 2018.
Ohio
Threshold: Sales of $100,000 or more annually or 200 or more separate transactions into the state in the current or last calendar year.
Summary: Sellers meeting either the sales or transaction number thresholds must register for an Ohio sales tax permit, collect sales tax on shipments into Ohio, and remit the collected sales tax to the state.
You can read more about Ohio’s economic nexus law here.
Effective date: August 1, 2019
Oklahoma
This notice and report law remained unaffected by the South Dakota v. Wayfair case, indicating it has been enforced legally since before the June 21, 2018 ruling.
Threshold: Sales in Oklahoma of at least $100,000 in the previous 12 months
Sellers who meet the threshold are required to elect to do one of the following on or before June 1 of each calendar year:
- Register for an Oklahoma sales tax permit and collect sales tax on Oklahoma sales
- Comply with Oklahoma’s notice and reporting requirements
You can read Oklahoma’s full economic nexus law here.
Effective date: November 1, 2019
Pennsylvania
Important note: Prior to January 2019, Pennsylvania’s law was a “notice & report law” which was not affected by the South Dakota v. Wayfair case. That means that this law has been in effect and was being legally enforced before the June 21, 2018, date the Wayfair ruling was handed down. For those who meet the new thresholds below, there are additional guidances in effect.
Threshold: Sales into Pennsylvania that exceeded $100,000 in the previous 12-month period are considered to have economic nexus. The notice and report is still in effect for those with taxable sales greater than $10,000 but less than $100,000 in a calendar year.
Summary: According to Pennsylvania, sellers meeting the nexus threshold must register for a Pennsylvania sales tax permit, collect sales tax on shipments into Pennsylvania, and remit the tax to the state.
Those not meeting the economic threshold must decide by March 1 each year to either:
- Register for a Pennsylvania sales tax permit, collect sales tax on shipments into Pennsylvania, and remit sales tax to the state.
- Comply with Pennsylvania’s comprehensive “notice and reporting requirements.”
You can read more about Pennsylvania’s economic nexus law (and notice and reporting requirements) here.
Puerto Rico
Threshold: $100,000 in gross sales or 200 sales transactions during the previous or current calendar year.
Effective: January 1, 2021
Summary: Sellers that meet either threshold are required to register for a Puerto Rico sales tax permit, collect sales tax on sales that ship into Puerto Rico, and remit sales tax to the state.
Learn more about Puerto Rico sales tax on their website.
Rhode Island
Before July 1, 2019, Rhode Island implemented a “notice & report law” for non-collecting sellers, which remained in effect independent of the South Dakota v. Wayfair ruling on June 21, 2018. Remote sellers in Rhode Island were required to either collect and remit sales tax or comply with non-collecting seller use tax notice and reporting requirements. Starting July 1, 2019, remote sellers are obligated to register for a sales tax permit in Rhode Island if they exceed the specified thresholds.
Threshold: Sales in Rhode Island that exceed $100,000 or more, or 200 separate transactions in the state in a calendar year
Summary: Rhode Island requires sellers meeting either the sales or transaction number thresholds to register for a Rhode Island sales tax permit, collect sales tax on sales shipped into the state, and remit the sales tax to Rhode Island.
Additionally, Rhode Island maintains use tax notice and reporting requirements for non-collecting sellers, which have not been repealed. Remote sellers exceeding the economic nexus thresholds must collect sales tax and are no longer eligible to comply solely with use tax notice and reporting. However, sellers who do not meet the economic nexus threshold can choose between registering to collect sales tax in Rhode Island or complying with the notice and report requirements for non-collecting sellers.
You can read Rhode Island’s economic nexus law (and notice and reporting requirements) here.
You can read guidance for vendors from the Rhode Island Department of Revenue here.
Notice and Report effective date: July 15, 2017
Economic nexus effective date: July 1, 2019
South Carolina
Threshold: Sales of $100,000 in South Carolina in the previous or current calendar year
Summary: In accordance with state regulations, sellers meeting either the sales or transaction number thresholds must obtain a South Carolina sales tax permit, collect sales tax on shipments into South Carolina, and submit the collected sales tax to the state.
You can read guidance on South Carolina’s economic nexus law here.
Effective date: November 1, 2018
South Dakota
Threshold: Sales of $100,000 in South Dakota, or more than 200 transactions in the state in a the current or last calendar year. Note: Beginning July 1, 2023, South Dakota will remove the 200 transaction threshold. (Source)
Summary: Sellers meeting either the sales or transaction number thresholds must register for a South Dakota sales tax permit, collect sales tax on sales shipped into South Dakota, and remit the collected sales tax to the state.
Effective date: November 1, 2018
Tennessee
Summary: Sellers exceeding the sales threshold must register for a Tennessee sales tax permit, collect sales tax on orders shipped into Tennessee, and remit the collected sales tax back to the state.
Threshold: As of October 1, 2020, sales exceeding $100,000 in the state in the previous 12 months
You can read about Tennessee’s economic nexus law here.
Effective date: October 1, 2019
Starting October 1, 2020 the threshold fell from $500,000 to $100,000 in sales in the state in the previous 12 months
Texas
Threshold: Sales above $500,000 in Texas in the previous calendar year.
Summary: Remote sellers whose Texas revenues exceed $500,000 must register for a Texas sales tax permit, collect sales tax on orders shipped to Texas, and remit the collected sales tax to the state. Sellers with Texas revenue below this threshold are not required to register or collect tax.
You can read about Texas’s economic nexus law here.
Effective date: October 1, 2019. (The initial timeframe for calculating these revenues was July 1, 2018, through June 30, 2019.)
Utah
Threshold: Sales of $100,000 or more in the state, or at least 200 individual sales transactions into the state in the current or last calendar year.
Summary: Sellers meeting or exceeding Utah’s sales or transaction number thresholds must register for a Utah sales tax permit. They are obligated to collect sales tax on sales that are shipped into Utah and remit the collected sales tax to the state.
You can read about Utah’s economic nexus law here.
Effective date: January 1, 2019
Vermont
Threshold: Sales of $100,000 or more in the state, or at least 200 individual sales transactions into the state during any preceding twelve-month period.
Summary: Sellers meeting or exceeding Vermont’s sales or transaction number thresholds must obtain a Vermont sales tax permit. They are mandated to collect sales tax on sales shipped into Vermont and submit the collected sales tax to the state.
You can read guidance on economic nexus from the Vermont Department of Revenue here.
Effective date: July 1, 2018
Virginia
Threshold: Sales of $100,000 or more in Virginia, or at least 200 individual sales transactions into the state if in the previous or current calendar year.
Summary: Under Virginia state law, sellers whose sales or transaction numbers meet or exceed specified thresholds are obligated to register for a Virginia sales tax permit. They must collect sales tax on goods shipped into Virginia and remit the collected sales tax to the state. Register online or complete Form R-1.
You can read Virginia’s complete legislation on economic nexus here.
Effective date: July 1, 2019
Washington
Economic Nexus Threshold: Sales of $100,000 or more into the state into Washington in the current or last calendar year.
- According to state regulations, sellers meeting or exceeding the specified sales thresholds must register for a Washington sales tax permit, collect sales tax on shipments into Washington, and remit the collected sales tax to the state.
Prior to March 14, 2019, remote sellers could also have economic nexus if they had 200 or more transactions in the state. And, effective July 1, 2019, SSB Bill 5581 eliminated both the notice and reporting requirements established in the state’s 2018 Marketplace Fairness law in addition to the 200 transaction trigger. If you previously registered because you met the 200 transaction threshold, assess your sales to see if you exceed the $100,000. If you do, continue to collect and submit retail sales tax.
You can read more about Washington’s economic nexus law (and notice and reporting requirements) here.
Effective date: October 1, 2018
Washington DC
Threshold: Sales of $100,000 in Washington D.C. or more than 200 transactions in the state in the previous calendar year.
Summary: Remote sellers in Washington D.C. exceeding either $100,000 in gross sales or 200 transactions must register for a Washington D.C. sales tax permit, collect sales tax on orders shipped to Washington D.C., and remit the collected sales tax accordingly.
You can read guidance on the text of Washington D.C. economic nexus law here.
Effective date: January 1, 2019.
West Virginia
Threshold: Sales of $100,000/year in gross revenue the previous calendar year OR 200 or more separate transactions in the previous or current calendar year.
Summary: Sellers meeting either the sales or transaction thresholds in West Virginia are mandated to register for a West Virginia sales tax permit, collect sales tax on sales shipped into the state, and remit the collected sales tax to West Virginia.
Full text: You can read guidance on West Virginia remote seller information here.
Effective date: January 1, 2019
Wisconsin
Threshold: Sales of $100,000 or more annually in the previous or current calendar year.
Summary: Unlike other states on this list, Wisconsin did not have an economic nexus law in effect before Wayfair v. South Dakota. However, in response to the SCOTUS decision, the Wisconsin Department of Revenue issued a statement about how Wisconsin intends to enforce the Wayfair decision.
Effective date: October 1, 2018; Updated February 2021
Wyoming
Threshold: Sales of $100,000 or more into the state, or 200 or more separate transactions into the state in the current or last calendar year.
Summary: According to state regulations, sellers meeting or exceeding the sales or transaction thresholds must obtain a Wyoming sales tax permit, collect sales tax on shipments into Wyoming, and submit the collected sales tax to the state.
You can read Wyoming’s economic nexus law here.
Effective date: February 1, 2019
We hope this post has provided more detail about the variety of economic nexus laws in the U.S. It’s crucial to emphasize that these laws are subject to change, and you should always consult with the state’s department of revenue or a trusted tax advisor before making significant decisions about your business
For further insights, explore the Startxpress Help Center and Blog. If you have questions or need support, reach out anytime at support@startxpress.io!
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