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

Updated 9/6/19

Economic nexus in the sales tax world 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 (September 6, 2019), there are 43 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 Gross Sales or 200 or More Separate Transactions

  • DC (1/1/19)
  • HI (7/1/18)
  • IL (10/1/18)
  • IN (10/1/18)
  • LA (1/1/19)
  • ME (7/1/18)
  • MD (10/1/18)
  • MI (10/1/18)
  • NE (4/1/19)
  • NV (10/1/18)
  • NJ (11/1/18)
  • NC (11/1/18)
  • OH (8/1/19)
  • SC (11/1/18)
  • SD (11/1/18)
  • UT (1/1/19)
  • VT (7/1/18)
  • WV (1/1/19)
  • WI (10/1/18)
  • WY (2/1/19)

Over $100,000 in Gross Sales

  • ID (6/1/19)
  • IA (1/1/19)
  • ND (10/1/18)

Other Thresholds

  • AL (10/1/18) – over $250,000 in retail (taxable) sales; wholesale sales do not count towards threshold.
  • AR (7/1/19) – taxable sales that meet the minimum threshold in previous year - $100,000 in taxable sales or 200 or more transactions per year
  • 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 $100,000 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
  • KY (10/1/18) – threshold of $100,000 in sales of tangible personal property or digital property or 200 or more transactions – does not apply to service sales
  • 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
  • MS (9/1/18) – Over $250,000 in gross sales
  • NM (7/1/19) – over $100,000 in total taxable gross receipts from the previous calendar year (not including wholesale or exempt sales)
  • NY (1/15/19) – over $500,000 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 (7/1/19) - $100,000 in total sales; if under $100,000 but over $10,000 or more of taxable sales in previous 12 months, must either (1) collect tax or (2) provide notice to buyers and report to the state. other threshold and use tax reporting requirements still apply if under $100,000 in sales
  • RI (7/1/19) -  gross revenue of $100,000 from the sale of tangible personal property, prewritten computer software, or taxable services or more or made 200 or more of these transactions in the state during the previous calendar year
  • 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
  • VA (7/1/19) – over $100,000 of gross retail sales (does not include wholesale, or non-taxable services) or 200 or more separate transactions
  • WA (10/1/18) – over $100,000 in retail sales (not wholesale, but does include exempt sales)

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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