State-by-State Breakdown of Economic Nexus

print February , 2019

The U.S. Supreme Court ruling in June of 2018 regarding sales tax nexus standards created a new source of significant revenue for 45 states. We cautioned at that time that states would take advantage of this opportunity quickly. Indeed, many states have already adopted new sales tax nexus standards, most using South Dakota’s threshold of $100,000 in sales or 200 transactions.

However, Texas and New York recently adopted sales tax nexus standards (Texas’ to begin 10/1/19 and New York’s was effective immediately) that use different thresholds.

Below is a listing of states with their sales tax nexus standards. We will update this list as new states issue guidance. It is also available as a printable PDF by clicking the PDF icon at the top left of this article.

Our advice to readers in June remains the same and is underscored by the mix of thresholds and effective dates you’ll see in the table. It is still important that you:

  • Understand each state’s sales tax laws (now, and as they are enforced, updated or changed over the coming months).
    • This will include the thresholds at which businesses must comply with each state’s sales tax laws.
  • Develop a strategy and plan to register, collect and report in accordance with state laws where necessary. Noncompliance is costly and increasingly possible with the challenge of differing laws among states.
  • Evaluate all options for compliance processes and reporting, and develop a process to implement these changes as quickly and efficiently as possible without interrupting the normal course of business.

Smith & Howard’s sales and use tax team can help; our knowledge of state sales tax laws and constant monitoring of emerging laws over the coming months will offer a tremendous advantage to your business.

Our technology consultants are an important part of our overall sales and use tax team and can tailor an automated solution to assist in calculation and remittance functions designed with your business in mind.

Please use the contact form below to schedule your review and/or to see how our Sales & Use Tax Team can work with your business to get and keep you in compliance as the sales tax landscape changes. Our initial consultations are always completed free of charge.

State Economic Nexus Thresholds Effective
Alabama$250,000 in sales in the state in previous calendar year10/1/2018
Arkansas$100,000 in sales in the state or 200 transactions for delivery into the state in previous or current calendar yearTBD*
California$100,000 in sales in the state or 200 transactions for delivery into the state in previous or current calendar year4/1/2019
Colorado$100,000 in sales in the state or 200 transactions for delivery into the state in previous or current calendar year12/1/2018
Connecticut$100,000 in sales in the state or 200 transactions for delivery into the state in previous 12-month period12/1/2018
District of Columbia$100,000 in sales in the state or 200 transactions for delivery into the state in previous or current calendar year1/1/2019
Georgia$100,000 in sales in the state or 200 transactions for delivery into the state in previous or current calendar year1/1/2019
Hawaii$100,000 in sales in the state or 200 transactions for delivery into the state in previous or current calendar year7/1/2018
Illinois$100,000 in sales in the state or 200 transactions for delivery into the state in previous 12-month period10/1/2018
Indiana$100,000 in sales in the state or 200 transactions for delivery into the state in previous or current calendar year10/1/2018
Iowa$100,000 in sales in the state or 200 transactions for delivery into the state in previous or current calendar year1/1/2019
Kentucky$100,000 in sales in the state or 200 transactions for delivery into the state in previous or current calendar year10/1/2018
Louisiana$100,000 in sales in the state or 200 transactions for delivery into the state in previous or current calendar year1/1/2019
Maine$100,000 in sales in the state or 200 transactions for delivery into the state in previous or current calendar year1/1/2018
Maryland$100,000 in sales in the state or 200 transactions for delivery into the state in previous or current calendar year1/1/2018
Massachusetts$500,000 in sales in the state or 100 transactions for delivery into the state in previous calendar year10/1/2017
Michigan$100,000 in sales in the state or 200 transactions for delivery into the state in previous calendar year10/1/2018
Minnesota100 transactions for delivery into the state or 10 transactions for delivery into the state totaling more than $100,000 in sales during 12 consecutive months10/1/2018
Mississippi$100,000 in sales in the state or 200 transactions into the state for delivery in previous or current calendar year9/1/2018
Nebraska$100,000 in sales in the state or 200 transactions for delivery into the state in previous or current calendar year1/1/2019
Nevada$100,000 in sales in the state or 200 transactions for delivery into the state in previous or current calendar year11/1/2018
New Jersey$100,000 in sales in the state or 200 transactions for delivery into the state in previous or current calendar year11/1/2018
New York$300,000 in sales in the state and 100 transactions for delivery into the state in preceding four quarter periods1/15/2019
North Carolina$100,000 in sales in the state or 200 transactions for delivery into the state in previous or current calendar year11/1/2018
North Dakota$100,000 in sales in the state or 200 transactions for delivery into the state in previous or current calendar year10/1/2018
OhioUse of in-state software (including internet cookies) and has gross receipts of over $500,000 in previous or current calendar year1/1/2018
Oklahoma$10,000 in sales in the state in previous 12-month period**7/1/2018
Pennsylvania$10,000 in sales in the state in previous calendar year24/1/2018
Rhode Island$100,000 in sales or 200 transactions in previous or current calendar year**8/17/2017
South Carolina$100,000 in sales in previous or current calendar year11/1/2018
South Dakota$100,000 in sales in the state or 200 transactions for delivery into the state in previous or current calendar year11/1/2018
Tennessee$500,000 in sales in the state in previous 12-month periodTBD*
Texas$500,000 in sales in the state in previous 12-month period10/1/2019***
Utah$100,000 in sales in the state or 200 transactions for delivery into the state in previous or current calendar year1/1/2019
Vermont$100,000 in sales in the state or 200 transactions for delivery into the state in previous 12-month period7/1/2018
Washington1. $100,000 in sales in the state or 200 transactions for delivery into the state in previous or current calendar year

2. $10,000 in sales in the state in previous or current calendar year**
10/1/2018


1/1/2018
West Virginia$100,000 in sales in the state or 200 transactions for delivery into the state in a previous or current calendar year1/1/2019
Wisconsin$100,000 in sales in the state or 200 transactions for delivery into the state in a calendar year10/1/2018
Wyoming$100,000 in sales in the state or 200 transactions for delivery into the state in previous or current calendar year2/1/2019

*Update on effective/enforcement date still to be provided or legislation still needs to be adopted.

**Sellers can elect to either collect and remit sales tax or comply with notice and reporting requirements.

***Legislation effective 1/1/19; enforcement effective 10/1/19

 

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