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Effects of Wayfair Decision

Shopping Cart ButtonJune 21st the Supreme Court ruled in favor of South Dakota and against Wayfair. Many states were awaiting that decision. Here is a list of the 20 states that either currently have an economic nexus law, have an upcoming economic nexus law or are currently working on creating one.
As we receive more information we will further update this list. Please call your accountant if you need to be registered.

State

Explanation

Details

Alabama

Alabama has published guidance stating that their economic nexus rule does not take effect until October 1, 2018. Note that Alabama passed their economic nexus rule in January of 2016.

Sales in excess of $250,000 should register for Alabama Simplified Sellers use tax program.

Arizona

Arizona's economic nexus rule has been in effect since 1990. However, was specific to "mail order retailers" and Arizona has not published updated guidance since the Wayfair decision in June 2018.

During any 12 month period retail sales exceeds $100,000

Colorado

Colorado's economic nexus reporting requirement has been in effect since July 1, 2014.

Sales exceeding $100,000 or 200 or more separate transactions in the previous calender year or the current calender year

Connecticut

Connecticut's economic nexus rule takes effect on December 1, 2018.

Waiting for governors signature but on the desk is at least $250,000 sales and more than 200 transactions

Hawaii

Hawaii's economic nexus rule went into effect on July 1, 2018.

Sales of $100,000 or more in the state

Indiana

Indiana cannot currently enforce it's economic nexus rule. That rule went into effect on July 1, 2017. However, they will be issuing a date soon to begin enforcing this law.

Sales exceeding $100,000 or 200 or more separate transactions in the previous calender year or the current calender year

Kentucky

Kentucky's economic nexus rule took effect on July 1, 2018.

Sales of $100,000 or more in the state or 200 transactions

Louisiana

Louisiana's economic nexus took effect for July 1, 2018.

Dollar amounts not stated as this time

Maine

Maine's economic nexus rule took effect November 1, 2017. Note, however, that the United States Supreme Court hinted in Wayfair that retroactive application may be illegal. This could mean that Maine's economic nexus rule can only be enforced after June 21, 2018 - the date of the Wayfair decision.

Sales exceeding $100,000 or 200 or more separate transactions in the previous calender year or the current calender year

Massachusetts

Massachusetts' economic nexus rule took effect September 22, 2017. Note, however, that the United States Supreme Court hinted in Wayfair that retroactive application may be illegal. This could mean that Massachusetts' economic nexus rule can only be enforced after June 21, 2018 - the date of the Wayfair decision.

 

Mississippi

Mississippi has indicated it's economic nexus rule is effective starting June 21, 2018. Note, however, the regulation on economic nexus has been effective since December 1, 2017.

Sales greater than $250,000 for the prior 12-month period must register

Oklahoma

Oklahoma's economic nexus rule took effect July 1, 2018.

Sales of at least $10,000 must collect tax or notify customer they be liable for use tax

Pennsylvania

Pennsylvania's economic nexus rule took effect April 1, 2018. Note that Pennsylvania allows sellers an election - collect tax or provide notice to buyers and report to the state. Although this rule applies retroactively (the rule was effective before the Wayfair decision) it is likely valid because of the election.

Sales of $10,000 or more in the previous calender year

Rhode Island

Rhode Island's economic nexus reporting rule took effect August 3, 2017.

No amounts stated at this time

South Dakota

South Dakota cannot currently enforce it's economic nexus rule. That rule went into effect on July 1, 2016. However, the Wayfair case has been sent from the United States Supreme Court to the South Dakota court system for final resolution. South Dakota cannot enforce it's economic nexus rule until that decision is final.

 

Tennessee

The Tennessee Department of Revenue has issued an economic nexus regulation, but the regulation may not be enforced until it is approved by the state legislature.

 

Vermont

Vermont's economic nexus rule took effect July 1, 2018. The law that created the economic nexus rule states that it becomes effective on the first day of the first quarter after there is no longer a physical presence rule.

Sales of $100,000 or 200 individual sales transactions

Washington

Washington's economic nexus rule took effect January 1, 2018. Note that Washington allows sellers an election - collect tax or provide notice to buyers and report to the state. Although this rule applies retroactively (the rule was effective before the Wayfair decision) it is likely valid because of the election.

Sales of $10,000 0r more in retail sales

Wisconsin

Wisconsin's economic nexus rule takes effect on October 1, 2018.

$100,000 or more or 200 or more separate separate transactioms

Wyoming

Wyoming issued guidance stating that it is currently working on determining a date when registration will be required. Note that the law creating the rule took effect on July 1, 2017. The United States Supreme Court hinted in the Wayfair decision that retroactive application is not legal. This is likely why Wyoming has not yet determined when registration will be required.

 

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