States that charge for sales tax registration
- Apr 26, 2017 | Gail Cole
Although it’s free to obtain a seller’s permit in a majority of states, many states charge for sales tax registration. As is often the case when sales tax is involved, it can be difficult to uncover all the information needed to obtain a sales tax license. Exact requirements vary by state, and within each state, requirements may vary based on the location or type of business.
The information provided below is not an end-point but rather a sales tax permit primer. Depending on the business, additional permits may be required and additional fees may apply. The links provided for each state should help put you on the right path to register to do business and make sales in that state.
States that charge for a seller’s permit
Arizona: The state charges $12 for new transaction privilege tax (TPT) licenses, but there is no charge for renewal; additional fees (up to $50 per jurisdiction) may also apply at the local level.
Arkansas: Retail and wholesale vendors must pay a $50 non-refundable application fee for a sales tax permit.
California: There is no set fee to register, but the California State Board of Equalization may require a security deposit.
Colorado: A two-year license costs $16 per business location, plus a one-time $50 deposit that is refunded after $50 in state sales tax has been remitted to the department; a renewal license charge of $16 per location is due every two years.
Connecticut: There is a “$100 one time permit fee” for sales tax registration; seller’s permits are good for five years and automatically renew at no cost provided the account is active.
Hawaii: There is a $20 fee for a general excise tax (GET) license.
Indiana: There is a fee of $25 (per location) for businesses legally required to register and collect sales tax.
Missouri: No set fee is required to obtain a sales tax license, but businesses making retail sales must post a bond equal to two times the average monthly sales and use tax; additional fees may apply for certain vendors (i.e., sellers of batteries or new tires).
Nevada: A $15 sales tax permit fee is required for each in-state business location. “If the business does not have a physical location in Nevada, it must still pay a minimum fee of $15.”
North Dakota: There is no fee, but the North Dakota Tax Commission may require a bond before issuing a seller’s permit.
Ohio: There is a $25 charge for each fixed place of business where taxable sales are made. Transient vendors must also obtain a $25 license.
Oklahoma: There is a $20 fee for a seller’s permit, plus $10 per additional location.
Rhode Island: There is an annual fee of $10 to do business and make retail sales of taxable goods and services in Rhode Island.
South Carolina: The charge for a retail license or accommodations license is $50; local tax jurisdictions may impose additional charges.
Washington: There is a processing fee of $19 to register a business in Washington. An additional $5 is charged for any additional trade names.
West Virginia: A $30 business registration fee may be required.
Wisconsin: A $20 fee applies to the first tax permit, but there is no charge for additional seller’s permits. The Wisconsin Department of Revenue may also require a business to make a deposit of up to $15,000.
Wyoming: There is a non-refundable application fee of $60 per business.
States with no sales tax
Alaska: There is no state sales tax but local sales tax is levied in some localities.
The fickle nature of sales tax often reveals itself early, when you’re trying to obtain a seller’s permit. Avalara can help. Our team of tax experts can help you understand your tax obligations, and our sales tax automation software facilitates sales and use tax compliance in all states. Learn more.