New Economic Nexus Laws Apply to ALL Retailers, Wholesalers, Distributors, and Manufacturers

Updated 6/24/19

Economic nexus has been a hot topic since the Supreme Court decision in the summer of 2018. States have issued new regulations, laws, and informational bulletins regarding the changing landscape of the impacts of economic nexus. At this point in time (June 24, 2019), there are 42 states that have some kind of economic nexus with various thresholds for volume of sales and transactions as well as various dates of enforcement (see dates in parenthesis).

Economic sales/use tax nexus is created if you have*:

Over $100,000 in Sales or 200 or More Separate Transactions

• AR (7/1/19)

• ME (7/1/18)

• SD (11/1/18)

• DC (1/1/19)

• MD (10/1/18)

• UT (1/1/19)

• HI (7/1/18)

• MI (10/1/18)

• VA (7/1/19)

• IL (10/1/18)

• NE (4/1/19)

• VT (7/1/18)

• IN (10/1/18)

• NV (10/1/18)

• WV (1/1/19)

• IA (1/1/19)

• NJ (11/1/18)

• WI (10/1/18)

• KY (10/1/18)

• NC (11/1/18)

• WY (2/1/19)

• LA (1/1/19)

• SC (11/1/18)

Over $100,000 in Sales;

• ID (6/1/19)

• ND (10/1/18)

• NM (7/1/19)

Over $250,000 in Sales

• AL (10/1/18)

• MS (9/1/18)

Other Thresholds

• AZ (10/1/19) – over $200,000 in sales for 2019, $150,000 in sales for 2020, and $100,000 in sales for 2021 and forward

• CA (4/1/19) – over $500,000 in sales

• CO (6/1/19) – over $100,000 in retail sales (not wholesale)

• CT (12/1/18) – over $250,000 in retail sales (not wholesale or non-taxable services) and 200 or more transactions

• GA (1/1/19) – over $250,000 in sales or 200 or more separate transactions

• MA (10/1/17) – over $500,000 in sales and 100 or more separate transactions (non-taxable services are not included in threshold); most likely cannot be enforced before 6/21/18

• MN (10/1/18) -100 or more retail transactions or 10 or more retail sales totaling more than $100,000; as of 10/1/19, threshold changes to 200 or more retail sales or $100,000 or more in retail sales for the prior 12 month period

• NY (1/15/19) – over $300,000 in sales of tangible personal property and 100 or more separate transactions in the preceding four quarters

• OK (7/1/18) - $10,000 in retail sales or can begin giving notice for use tax to customers in OK and need to file an annual report of all sales into the state

• PA (4/1/18) - $10,000 in retail sales or can begin giving notice for use tax to customers in PA and need to file an annual report of all sales into the state; updated for 7/1/19, $100,000 in total sales, other threshold and use tax reporting requirements still apply if under $100,000 in sales

• RI (8/3/17) - $100,000 in retail sales or 200 separate transactions; will need to register, collect, and remit or can begin giving notice for use tax to customers in RI

• TN (10/1/19) – over $500,000 in sales (threshold does not include wholesale sales or non-taxable service providers only)

• TX (10/1/19) – over $500,000 in sales in preceding 12 months

• WA (1/1/18) - $10,000 in sales: can elect to do reporting requirements; 10/1/18 - $100,000 or 200 or more transactions – must register, cannot elect reporting requirements

Pending

• FL

• MO

*This is assuming that a company has no other nexus with the state.

If you have any questions on this, please contact  Ashley Barak, Bill Sebastiano, or Kelly Switt in our State and Local Tax Department.

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