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SALES AND USE TAX ECONOMIC NEXUS: ANALYSIS OF STATE THRESHOLDS

The following information is a basic summary of the economic nexus thresholds for each U.S. state in light of 2018's paradigm-shifting South Dakota v. Wayfair decision.

Read more about the South Dakota v. Wayfair decision here.

If you believe this decision may affect your business, please see our Nexus Activity Questionnaire.

Alabama

Threshold: $250,000 in sales for the previous calendar year

Effective Date: October 1, 2018

Notes: Engaging in certain additional activities within the state may also trigger economic nexus

ALAska

Alaska has not established an economic nexus threshold.

Arizona

Arizona has not established an economic nexus threshold.

Arkansas

Arkansas has not established an economic nexus threshold.

California

Threshold: $100,000 in sales OR 200 transactions for the previous OR current calendar year

Effective Date: April 1, 2019

Colorado

Threshold: $100,000 in sales OR 200 transactions for the previous OR current calendar year

Effective Date: December 1, 2018

Connecticut

Threshold: $250,000 in sales AND 200 transactions for the previous calendar year

Effective Date: December 1, 2018

Notes: Engaging in certain additional activities within the state may also trigger economic nexus

Delaware

Delaware has not established an economic nexus threshold.

District of Columbia

Threshold: $100,000 in sales OR 200 transactions for the previous OR current calendar year

Effective Date: January 1, 2019

Florida

Florida has not established an economic nexus threshold.

Georgia

Threshold: $250,000 in sales OR 200 transactions for the previous OR current calendar year

Effective Date: January 1, 2019

Notes: Possible alternative additional reporting requirement for certain dealers

Hawaii

Threshold: $100,000 in sales OR 200 transactions for the previous OR current calendar year

Effective Date: July 1, 2018

Idaho

Threshold: $100,000 in sales

Effective Date: July 1, 2018

Notes: Idaho is still reviewing the Supreme Court decision; threshold and effective date refer to referral nexus

Illinois

Threshold: $100,000 in sales OR 200 transactions in the previous 12 months

Effective Date: October 1, 2018

Notes: Retailers must determine if these thresholds are met on a quarterly basis

Indiana

Threshold: $100,000 in sales OR 200 transactions for the previous OR current calendar year

Effective Date: October 1, 2018

Iowa

Threshold: $100,000 in sales OR 200 transactions for the previous OR current calendar year

Effective Date: January 1, 2019

Kansas

Kansas has not established an economic nexus threshold.

Kentucky

Threshold: $100,000 in sales OR 200 transactions in the previous OR current calendar year

Effective Date: October 1, 2018

Louisiana

Threshold: $100,000 in sales OR 200 transactions in the previous OR current calendar year

Effective Date: January 1, 2019

Maine

Threshold: $100,000 in sales OR 200 transactions for the previous OR current calendar year

Effective Date: July 1, 2018

Maryland

Threshold: $100,000 in sales OR 200 transactions for the previous OR current calendar year

Effective Date: October 1, 2018

Massachusetts

Threshold: $500,000 in sales AND 100 transactions for the previous calendar year

Effective Date: October 1, 2018

Notes: State laws quantify certain web based applications as establishing physical presence

Michigan

Threshold: $100,000 in sales OR 200 transactions in the previous OR current calendar year

Effective Date: October 1, 2018

Minnesota

Threshold: $100,000 in sales in 10 transactions OR 100 transactions over a 12-month period

Effective Date: October 1, 2018

Notes: Certain sellers may be eligible for exemption based on sales figures

Mississippi

Threshold: $250,000 in sales in the previous 12 months

Effective Date: September 1, 2018

Notes: Engaging in certain solicitation activities may also trigger economic nexus

Missouri

Missouri has not established an economic nexus threshold.

Montana

Montana has not established an economic nexus threshold.

Nebraska

Threshold: $100,000 in sales OR 200 transactions for a calendar year

Effective Date: January 1, 2019

New Hampshire

New Hampshire has not established an economic nexus threshold.

New Jersey

Threshold: $100,000 in sales OR 200 transactions in the previous OR current calendar year

Effective Date: November 1, 2018

New Mexico

New Mexico has not established an economic nexus threshold.

NEW York

New York has not established an economic nexus threshold.

NEvada

Threshold: $100,000 in sales OR 200 transactions in the previous OR current calendar year

Effective Date: October 1, 2018

North Carolina

Threshold: $100,000 in sales OR 200 transactions in the previous OR current calendar year

Effective Date: November 1, 2018

Notes: Effective date begins 60 days after taxpayer meets threshold

North Dakota

Threshold: $100,000 in sales OR 200 transactions in the previous OR current calendar year

Effective Date: October 1, 2018

Ohio

Threshold: $500,000 in sales for the previous OR current calendar year

Effective Date: January 1, 2018

Notes: Certain software use or distribution agreements may also trigger economic nexus

Oklahoma

Threshold: $10,000 in sales for the previous OR current calendar year

Effective Date: July 1, 2018

Notes: May alternatively comply with detailed reporting requirements

Oregon

Oregon has not established an economic nexus threshold.

Pennsylvania

Threshold: $10,000 in sales for the previous OR current calendar year

Effective Date: March 1, 2018

Notes: May alternatively comply with detailed reporting requirements

Rhode Island

Threshold: $100,000 in sales OR 200 transactions in the previous calendar year

Effective Date: August 17, 2017

Notes: May alternatively comply with detailed reporting requirements

South CAROLINA

Threshold: $100,000 in sales for the previous OR current calendar year

Effective Date: November 1, 2018

Notes: Certain consignment property must be included gross sales figure

South Dakota

Threshold: $100,000 in sales OR 200 transactions for a calendar year

Effective Date: November 1, 2018

Tennessee

Threshold: $500,000 in sales in the previous 12 months

Effective Date: Pending

Notes: Litigation pending

Texas

Threshold: $500,000 in sales in the previous 12 months

Effective Date: October 1, 2019

Notes: Effective date begins 60 days after taxpayer meets threshold

Utah

Threshold: $100,000 in sales OR 200 transactions for a calendar year

Effective Date: January 1, 2019

Notes: Effective date begins 60 days after taxpayer meets threshold

Vermont

Threshold: $100,000 in sales OR 200 transactions in the previous 12 months

Effective Date: July 1, 2018

Virginia

Virginia has not established an economic nexus threshold.

Notes: Legislation being discussed, possible effective date 7/1/2019

Washington

Threshold: $100,000 in sales OR 200 transactions in the previous OR current calendar year

Effective Date: October 1, 2018

Notes: May alternatively comply with detailed reporting requirements

West Virginia

Threshold: $100,000 in sales OR 200 transactions in the previous calendar year

Effective Date: January 1, 2019

Notes: Effective date begins 60 days after taxpayer meets threshold

Wisconsin

Threshold: $100,000 in sales OR 200 transactions for a calendar year

Effective Date: October 1, 2018

Wyoming

Threshold: $100,000 in sales OR 200 transactions in the previous OR current calendar year

Effective Date: February 1, 2019

 

 

The data provided above is a basic summary of a complex topic. The contents of this communication are for informational purposes only and do not constitute legal or financial advice. Our well-versed team is ready to review your business’s sales and use tax reporting requirements and any resulting potential change in tax liability. We look forward to having the opportunity to provide an analysis on how this shift has specifically impacted your business.