Wisconsin may eliminate its economic nexus transaction threshold

Update February 22, 2021: Wisconsin eliminated the 200 sales transactions threshold effective February 20, 2021.

Like 42 other states, Washington, D.C., and parts of Alaska, Wisconsin has an economic nexus law that requires remote retailers doing a certain amount of business in the state to collect and remit sales tax. Like most of these states, Wisconsin provides an exception for businesses whose sales don’t meet the economic nexus threshold. And like 23 other states, D.C., and parts of Alaska, Wisconsin’s economic nexus threshold is based on sales or transaction volume.

For now.

California, Iowa, North Dakota, and Washington once based their economic nexus thresholds on sales or transactions, too. But now, economic nexus in these states is based on sales only. Each eliminated the transactions threshold.

A bill making its way through the Wisconsin Legislature would do the same. Assembly Bill 754 would change the state’s economic nexus threshold from more than $100,000 or at least 200 transactions in the current or previous calendar year, to more than $100,000 in the previous or current calendar year — period.

The measure recently passed the House and is slated to be taken up by the Senate. If it becomes law, Wisconsin will be one of several states that simplified their economic nexus laws to make compliance less burdensome for remote retailers.

Not sure where your business has economic nexus? Take the free sales tax risk assessment and find out.

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