Avalara > Blog > Sales and Use Tax > October 2018 sales tax changes

October 2018 sales tax changes


Sales and use tax changes take effect in numerous states on October 1, 2018: new local rates, new exemptions, new taxes on software as a service (SaaS), and more. Yet, perhaps the most notable change of all pertains to remote sellers, those with no physical presence in a state.

New tax requirements for out-of-state sellers

Under economic nexus policies, remote retailers with no physical presence in a state are required to collect and remit sales and use tax because of their economic activity in the state. No physical presence is needed.

On October 1, 2018 — Nexus Monday — economic nexus takes effect in 10 states: Alabama, Illinois, Indiana, Kentucky, Maryland, Michigan, Minnesota, North Dakota, Washington, and Wisconsin. 

New sales tax exemptions

Tampons in Washington, D.C.

New sales tax rates

New software taxes

New surcharge on prearranged rides (e.g., Uber, Lyft)

Sales tax software can help businesses of all sizes in all states manage sales tax more efficiently. Learn more.

Avalara Author
Gail Cole
Avalara Author Gail Cole
Gail Cole began researching and writing about sales tax for Avalara in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.