State-by-state guide to economic nexus laws

On June 21, 2018, the Supreme Court of the United States ruled in favor of the state in South Dakota v. Wayfair, Inc. This ruling allows the state to begin taxing remote sales via their economic nexus laws. Since the ruling, more than 40 states enacted economic nexus laws of their own.

Economic nexus laws by state

as of August 18, 2020

Prior to this ruling, states could only enforce a tax collection obligation on businesses that had a physical presence in the state, such as a brick-and-mortar location or remote employees. While the physical presence standard still exists, nexus laws were expanded to include a sales tax obligation based on a certain level of economic activity within the state, including sales revenue, transaction volume, or a combination of both. Like many sales tax laws, economic nexus criteria vary by state and by the type of tax.

Below we’ll explore which states currently enforce economic nexus laws and some of the variations in each state’s law. For more information or assistance in determining your sales tax registration, collection, and remittance requirements, contact Avalara Professional Services

Although we hope you’ll find the information helpful, this guide does not offer a substitute for professional legal or tax advice. If you have questions about your tax liability or concerns about compliance, please consult your qualified legal, tax, or accounting professional. This information was compiled in May 2019. Because states constantly update and amend their sales and use tax laws, see each state’s tax authority website for the most up-to-date and comprehensive information.

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Alabama

Enforcement date: 
October 1, 2019

Included transactions:  
Total retail sales of tangible personal property delivered into the state. Sales made through a registered marketplace facilitator are not included, but sales made thorugh a non-collecting marketplace are included.

Treatment of exempt transactions: 
Exempt sales (except wholesale sales) are included in the threshold. Exempt services are not included.

Trigger:
Sales only

Sales/transactions threshold: 
$250,000 

Evaluation period:
Threshold applies to sales from the previous calendar year 

Additional information:


Alaska

Enforcement date:
v
aries by district

Included transactions:  
Statewide gross sales of goods, property, or products delivered into the state or services rendered in the state, including sales through a marketplace

Treatment of exempt transactions: 
Exempt sales and exempt services are included in the threshold

Trigger:
Sales or transactions

Sales/transactions threshold: 
$100,000 or 200 transactions

Evaluation period:
Threshold applies to sales from the previous calendar year 

Additional information:

  • Though Alaska has no statewide sales tax, many local governments levy local sales and use taxes. Some now enforce economic nexus. The economic nexus threshold is based on a remote seller's statewide sales, not its sales into a particular jurisdiction.
  • Registration requirements: A remote business must register with the Alaska Remote Seller Sales Tax Commission 30 days after the later of: the adoption of the remote seller sales tax code by a municipality; or passing the economic nexus threshold.
  • Sellers that exceed the economic nexus threshold but don't sell into districts with economic nexus are not required to register.
  • Alaska Remote Seller Sales Tax Commission

Arizona

Enforcement date:
October 1, 2019

Included transactions:  
Gross proceeds of sales of tangible personal property or services, or gross income derived from business in the state. Services are included in the threshold. Sales made through a marketplace are not included.     

Treatment of exempt transactions: 
Exempt sales and exempt services are included in the threshold

Trigger:
Sales only

Sales/transactions threshold: 
$200,000 (2019)
$150,000 (2020)
$100,000 (2021 forward)

Evaluation period:
Threshold applies to sales from the previous or current calendar year 

Additional information:


Arkansas

Enforcement date:
July 1, 2019

Included transactions:  
Aggregated sales of taxable tangible personal property, taxable services, digital codes, or specified digital products subject to Arkansas sales or use tax delivered into the state. Sales made through a registered marketplace are not included.    

Treatment of exempt transactions: 
Exempt sales and exempt services are not included in the threshold

Trigger:
Sales or transactions

Sales/transactions threshold: 
$100,000 or 200 transactions

Evaluation period:
Threshold applies to sales from the current or previous calendar year 

Additional Information:


California

Enforcement date: 
April 1, 2019 

Included transactions: 
Total combined sales of tangible personal property delivered into the state by the retailer and all persons related to the retailer. Services are not included in the threshold.

Treatment of exempt transactions: 
Exempt sales (i.e., nontaxable sales such as sales for resale) are included; exempt services are not included in the threshold

Trigger:
Sales only

Sales/transactions threshold: 
$500,000

Evaluation period:
Threshold applies to sales in the preceding or current calendar year

Additional information:

  • California businesses meeting the economic nexus threshold in the state are required to collect all district (local) taxes starting April 25, 2019. 
  • Registration requirements: California requires remote businesses to register and begin collecting sales tax on the day they cross the economic nexus threshold. See CDTFA FAQs for more details.
  • Use tax collection requirements
  • CDTFA Wayfair FAQ
  • AB147

Colorado

Enforcement date:
December 1, 2018, with a grace period through May 31, 2019

Included transactions:
Retail sales of tangible personal property, commodities, or services delivered into the state are included in the threshold 

Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold, except wholesales 

Trigger:
Sales only

Sales/transactions threshold: 
$100,000 

Evaluation period: 
Threshold applies to the previous or current calendar year

Additional information: 

  • Out-of-state sellers required to collect also need to collect and remit applicable local and special district sales taxes that are state-collected. Sellers that make sales in home rule cities where the state doesn’t collect sales tax should contact the cities directly to learn about their requirements.
  • In-state sellers that don't meet the economic nexus threshold in the state should source sales based on their location. Colorado businesses that do meet the economic threshold are required to use destination sourcing for all sales within 90 days of meeting the threshold.
  • Registration requirements: Colorado requires a remote business to register and collect Colorado sales tax by the first day of the first month commencing at least 90 days after crossing the threshold. See the Sales Tax Guide for more details (page 11).
  • HB19-1240
  • Colorado offers grace period for those that need it

Connecticut

Enforcement date: 
December 1, 2018; amended as of July 1, 2019    

Included transactions: 
- Prior to July 1, 2019: Gross receipts from tangible personal property sold into the state, except sales for resale, provided the retailer regularly or systematically solicits the sales in the state. Services are not included.
As of July 1, 2019: Gross receipts from tangible personal property or services; the regular or systematic solicitation component is eliminated.

Treatment of exempt transactions:  
- Prior to July 1, 2019: Exempt sales are included in the sales threshold; sales for resale are excluded from the transaction test; exempt services are excluded from the sales and transaction test
As of July 1, 2019: Exempt sales and exempt services are included in the sales threshold, as are sales through an online marketplace; exempt sales and exempt services (except sales for resale) are excluded from the transaction threshold

Trigger: 
Sales and transaction volume

Sales/transactions threshold: 
- Prior to July 1, 2019: Gross receipts of $250,000 and 200 retail transactions
- As of July 1, 2019: Gross receipts of $100,000 and 200 retail transactions

Evaluation period:
Threshold applies to all transactions within the 12-month period ending on September 30th immediately preceding the monthly or quarterly period during which liability is established

Additional information:

  • Registration requirements: Connecticut hasn’t specified how soon a remote business must register once it crosses the economic nexus threshold.
  • SB 417
  • HB 7424

Georgia

Enforcement date:
January 1, 2019

Included transactions: 
Gross revenue from retail sales of tangible personal property delivered electronically or physically to a location in the state for consumption, use, or storage in the state. Taxable services are not included in the threshold.

Treatment of exempt transactions:
Exempt sales, except resales, are included but exempt services are not included in the threshold 

Trigger: 
Sales or transaction volume. 

Sales/transactions threshold: 
- Prior to January 1, 2020: $250,000 or 200 transactions.
- As of January 1, 2020: $100,000 or 200 transactions.

Evaluation period: 
Threshold applies to the previous or current calendar year

Additional information: 


Hawaii

Enforcement date: 
July 1, 2018

Included transactions:
Gross income or gross proceeds of tangible personal property, intangible property, or services delivered or consumed in the state

Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold 

Trigger:
Sales or transaction volume

Sales/transactions threshold: 
$100,000 or 200 transactions

Evaluation period:
Threshold applies to the current or immediately preceding calendar year. Applies to taxable years beginning on January 1, 2018.

Additional information:

  • Registration requirements: Hawaii requires a remote business to file its first periodic return by the deadline for the periodic return following the period in which it crossed the economic nexus threshold. See the Department of Taxation Announcement 18-10 for more details.
  • Department of taxation announcement
  • HI SB2514

Idaho

Enforcement date: 
June 1, 2019

Included transactions:
Cumulative gross receipts from sales including taxable products and taxable services delivered into the state   

Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold

Trigger: 
Sales only

Sales/transactions threshold: 
$100,000

Evaluation period: 
Threshold applies to the current or preceding calendar year

Additional information:

  • Remote sellers with economic nexus are not responsible for collecting or remitting local sales tax in Idaho.
  • Registration requirements: Idaho requires remote businesses to track their sales and register before reaching the threshold, so they’ll have their seller’s permit in time to begin collecting sales tax as soon as they cross the economic nexus threshold.
  • HB 259

Illinois 

Enforcement date: 
October 1, 2018

Included transactions: 
Cumulative gross receipts from sales of tangible personal property and property sold incident to a service into the state, excluding occasional sales; taxable services are not included
- As of January 1, 2020, sales made through a marketplace facilitator are excluded from the threshold

Treatment of exempt transactions:
Exempt sales, including exempt sales of property sold incident to a service, are included; sales for resale are not included; exempt services are not included in the threshold 

Trigger: 
Sales or transaction volume

Sales/transactions threshold: 
$100,000 or 200 transactions

Evaluation period:
Although the threshold applies to the preceding 12 months, it must be determined on a quarterly basis. Additional exclusions exist for property that must be registered with the state.

Additional information:


Indiana 

Effective date: 
October 1, 2018

Included transactions:
Gross revenue from sales of tangible personal property, electronically delivered products, and services into the state  

Treatment of exempt transactions: 
Exempt sales and exempt services are included in the threshold 

Trigger: 
Sales or transaction volume

Sales/transactions threshold: 
$100,000 or 200 transactions

Evaluation period: 
Threshold applies to transactions in the previous or current calendar year

Additional information:


Iowa

Enforcement date: 
January 1, 2019

Included transactions:  
Gross revenue from sales of tangible personal property, specified electronically delivered products, and services into the state

Treatment of exempt transactions: 
Exempt sales and exempt services are included in the threshold 

Trigger:
Prior to July 1, 2019: Sales or transaction volume
As of July 1, 2019: Sales only

Sales/transactions threshold:
Prior to July 1, 2019: $100,000 or 200 transactions
As of July 1, 2019: The transactions threshold is eliminated

Evaluation period:
Threshold applies to transactions for an immediately preceding or current calendar year 

Additional information:

  • Registration requirements: Iowa requires remote businesses to register to collect and remit sales tax “on the first day of the next calendar month that starts at least 30 days from the day the remote seller first exceeded” the threshold. See Remote Sellers for more details.
  • Remote sellers information
  • SF2417

Kansas

Enforcement date: 
October 1, 2019, according to the Kansas Department of Revenue. However, the Kansas Attorney General determined the Kansas Department of Revenue lacks the authority to tax remote sales without providing safe harbor for small sellers. The Kansas Department of Revenue disagrees, saying it cannot select the laws it enforces. What all this means for remote retailers is uncertain. 

Included transactions:  
The rule applies to "any retailer who has any other contact with this state that would allow this state to require the retailer to collect and remit tax under the provisions of the constitution and laws of the United States"

Treatment of exempt transactions:  
Awaiting further clarification on the treatment of exempt sales and services

Trigger: 
N/A; there is no small seller exception

Sales/transactions threshold: 
N/A; there is no small seller exception

Evaluation period:
N/A; there is no small seller exception

Additional information:


Kentucky

Enforcement date: 
October 1, 2018

Included transactions:  
Gross receipts from sales of tangible personal property or digital property delivered or transferred electronically into the commonwealth. Taxable services are not included in the threshold.   

Treatment of exempt transactions:  
Exempt sales are included; exempt services are not included in the threshold 

Trigger: 
Sales or transaction volume

Sales/transactions threshold:
$100,000 or 200 transactions

Evaluation period:
Threshold applies to sales in the previous or current calendar year

Additional information:


Louisiana 

Enforcement date:
July 1, 2020

Included transactions: 
Gross revenue from sales of products, electronically transferred products, or services into the state, including receipts of affiliates

Treatment of exempt transactions: 
Exempt sales and exempt services are included in the threshold 

Trigger:
Sales or transaction volume

Sales/transactions threshold:
$100,000 or 200 transactions

Evaluation period:
Threshold applies to the previous or current calendar year

Additional information:


Maine 

Enforcement date: 
July 1, 2018

Included transactions:  
Gross sales of tangible personal property* and taxable services delivered into the state

Treatment of exempt transactions: 
Exempt sales are included in the threshold; exempt services are not included in the threshold

Trigger:
Sales or transaction volume

Sales/transactions threshold:
$100,000 or 200 transactions

Evaluation period:
Threshold applies to sales during the current or previous calendar year

Additional information:


Maryland

Enforcement date:
October 1, 2018

Included transactions:
Gross revenue from sales of tangible personal property or taxable services delivered into the state

Treatment of exempt transactions:
Exempt sales are included; exempt services are not included in the threshold 

Trigger:
Sales or transaction volume

Sales/transactions threshold:
$100,000 or 200 transactions

Evaluation period:
Threshold applies to sales during the current or previous calendar year

Additional information:


Massachusetts

Enforcement date: 
October 1, 2019

Included transactions:
Sales of tangible personal property and services

Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold 

Trigger:
Sales only

Sales/transactions threshold:
$100,000

Evaluation period:
Threshold applies to the prior or current taxable year

Additional information:

  • The Department of Revenue repealed the cookie nexus rule
  • Registration requirements: Massachusetts requires a remote vendor to register to collect and remit sales tax by the first day of the first month beginning two months after the month in which the threshold was crossed. Different rules may apply to businesses who crossed the threshold in 2019. See 830 CMR 64H.1.9 for more details.
  • Remote vendors FAQs
  • Bill H.4000

Michigan

Enforcement date:
After September 30, 2018

Included transactions:
Sales of tangible personal property or taxable services delivered into the state

Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold 

Trigger:
Sales or transactions

Sales/transactions threshold:
$100,000 or 200 transactions

Evaluation period:
Threshold applies to the previous calendar year

Additional information:

  • Registration requirements: Michigan requires a remote business to register to collect and remit sales tax by the start of the calendar year after the threshold was crossed.
  • Information for remote sellers
  • RAB 2018-16

Minnesota

Enforcement date:
October 1, 2018, amended as of October 1, 2019

Included transactions:
Applies to retail sales made into the state from outside the state. Taxable services (except resales) are included in the threshold.

Treatment of exempt transactions:
Exempt sales and sales to tax-exempt entites are included in the threshold, but sales for resale are not. Exempt services are not included in the threshold. 

Trigger:
Sales or transaction volume

Sales/transactions threshold:
Prior to October 1, 2019: 10 or more sales totaling $100,000 or 100 retail sales
As of October 1, 2019: $100,000 or 200 or more retail sales

Evaluation period:
Threshold applies to the prior 12-month period

Additional information:

  • Registration requirements: Minnesota requires a remote business to register to collect and remit Minnesota sales tax on the first taxable retail sale into Minnesota occurring no later than 60 days after the threshold has been crossed. See Remote Seller FAQs for more details.
  • HF5

Mississippi

Enforcement date:
September 1, 2018

Included transactions:
Total sales made into the state by remote sellers that purposefully or systematically exploit the market in the state. Services are included in the threshold.

Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold 

Trigger:
Sales only

Sales/transactions threshold:
$250,000

Evaluation period:
Threshold applies to all transactions for the prior 12 months

Additional infomation:

  • Registration requirements: Mississippi hasn’t specified how soon a remote business must register once it crosses the economic nexus threshold. It could be as early as the next transaction.  
  • Guidance for remote sellers

Nebraska 

Enforcement date: 
April 1, 2019 (pushed back from January 1, 2019 by GIL-1-19-2)

Included transactions:
Total retail sales made to customers in Nebraska.

Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold, except resales, sublease, or subrent

Trigger:
Sales or transaction volume

Sales/transactions threshold:
$100,000 or 200 transactions

Evaluation period:
Threshold applies to the previous or current calendar year.

Additional information:

  • Registration requirements: Nebraska requires a remote business to register to collect and remit Nebraska sales tax on or before the first day of the second calendar month after the threshold is exceeded. See FAQs for remote sellers for more details.
  • Remote sellers FAQ
  • LB284

Nevada 

Enforcement date:
October 1, 2018

Included transactions:
Gross revenue from retail sales of tangible personal property into the state, excluding sales for resale. Services are not included in the threshold.

Treatment of exempt transactions:
Exempt sales (except sales for resale) are included in the threshold; exempt services are not included in the threshold 

Trigger:
Sales or transactions

Sales/transactions threshold:
$100,000 or 200 transactions

Evaluation period:
Threshold applies to the proceeding or current calendar year

Additional information:

  • Registration requirements: Nevada requires a remote business to register to collect and remit Nevada sales tax starting on the first day of the first calendar month that begins at least 30 calendar days after it crosses the economic nexus threshold. See LCB File No. R014-201 for more details.
  • Remote sellers FAQs
  • R189-18

New Jersey    

Enforcement date:
November 1, 2018

Included transactions:
Gross revenue of tangible personal property, specified digital products, or taxable services (enumerated services under N.J.S.A. 54:32B-3(b)) delivered into the state, excluding sales for resale

Treatment of exempt transactions:
Exempt sales — excluding sales for resale — are included in the threshold. Any and all receipts from services enumerated and taxable under N.J.S.A. 54:32B-3(b) and delivered into New Jersey should be included in the threshold calculation even if a service is exempt under the specific circumstances of the transaction. Exempt services are not included.

Trigger:
Sales or transactions

Sales/transactions threshold:
$100,000 or 200 transactions

Evaluation period:
Threshold applies to the current or prior calendar year

Additional information:

  • Registration requirements: New Jersey requires a remote business to register to collect and remit New Jersey sales tax within 30 calendar days after crossing the economic nexus threshold. See Remote Sellers FAQs for more details.
  • Remote sellers that only make nontaxable retail sales are required to register with New Jersey upon reaching the economic threshold, but may then request to be placed on a non-reporting basis by completing Form C-6205-ST. See Remote sellers FAQs.
  • Information for remote sellers
  • NJ A4496

New Mexico

Enforcement date:
July 1, 2019

Included transactions:
Total taxable gross receipts from sales, leases, and licenses of tangible personal property, as well as sales of licenses and services of licenses for use of real property sourced to the state

Treatment of exempt transactions:
Exempt sales and exempt services are not included in the threshold 

Trigger:
Sales only

Sales/transactions threshold:
$100,000

Evaluation period:
Threshold applies to the previous calendar year

Additional information:

  • New Mexico businesses meeting the economic nexus threshold in the state are required to collect city and county GRT starting January 1, 2021, once destination sourcing takes effect.
  • Registration requirements: New Mexico requires a remote business to register for New Mexico gross receipts tax by January 1 of the year following the year it crossed the economic nexus threshold.
  • Changes to New Mexico tax law
  • HB6

New York

Enforcement date:
Effective “immediately after the Wayfair ruling, June 21, 2018”; however, no clearly stated effective date is currently provided

Included transactions:
Cumulative total gross receipts from sales of tangible personal property delivered into the state (SaaS is considered TPP); services are not included in the threshold 

Treatment of exempt transactions:
Exempt sales are included in the threshold; exempt services are excluded

Trigger:
Sales and transaction volume

Sales/transactions threshold:
$500,000 and 100 transactions

Evaluation period:
Threshold applies to the previous four sales tax quarters as defined by the state

Additional information:

  • Registration requirements: New York requires a remote business to register to collect and remit New York sales tax within 30 days after crossing the economic nexus threshold and begin to collect tax 20 days thereafter. See Nexus FAQs for more details.
  • Remote seller requirements

North Carolina

Enforcement date:
November 1, 2018

Included transactions:
Gross sales sourced to North Carolina (the sum total sales price of tangible personal property, digital property, and services sourced to the state, unless the context requires otherwise).

Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold 

Trigger:
Sales or transactions

Sales/transactions threshold:
$100,000 or 200 transactions

Evaluation period:
Threshold applies to the previous or current calendar year

Additional information:

  • Registration requirements: North Carolina requires a remote business to register to collect and remit North Carolina sales tax within 60 days of crossing the economic nexus threshold. See Remote Sales for more details.
  • Information for remote sellers
  • SB56

North Dakota

Enforcement date: 
October 1, 2018

Included transactions:
Gross taxable sales of tangible personal property and other items into the state, including taxable services

Treatment of exempt transactions:
Exempt sales and exempt services are not included in the threshold 

Trigger:
Prior to January 1, 2019: Sales or transactions
As of January 1, 2019: Sales only

Sales/transactions threshold:
Prior to January 1, 2019: $100,000 or 200 transactions
As of January 1, 2019: $100,000 only

Evaluation period:
Threshold applies to the previous or current calendar year

Additional information:

  • A seller that exceeds the sales threshold must begin to collect sales tax on sales delivered during the following calendar year or 60 days after the threshold is met, whichever is earlier.
  • Registration requirements: North Dakota requires remote businesses to register to collect and remit North Dakota sales tax the earlier of the following calendar year or 60 days after crossing the economic nexus threshold.
  • Remote sellers FAQ
  • SB 2191
  • SB 2298

Ohio 

Enforcement date: 
August 1, 2019

Included transactions:
Gross receipts from the sale of tangible personal property for storage, use, or consumption in the state or from providing services the benefit of which is realized in the state

Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold 

Trigger:
Sales or transactions

Sales/transactions threshold:
$100,000 or 200 transactions

Evaluation period:
Threshold applies to the current or preceding calendar year

Additional information:

  • The new law repeals the previous cookie nexus law that applied only to software or network providers.
  • Registration requirements: Ohio requires remote businesses to register and begin collecting Ohio sales tax the day after crossing the economic nexus threshold. See Out-of-state Sellers for more details.
  • HB166

Oklahoma 

Enforcement date: 
November 1, 2019

Included transactions:
Aggregate sales of taxable tangible personal property delivered to locations within the state. Services are not included in the threshold.

Treatment of exempt transactions:
Exempt sales and exempt services are not included in the threshold 

Trigger:
Sales only

Sales/transactions threshold:
$100,000

Evaluation period:
Threshold applies to the previous or current calendar year

Additional information:

  • Registration requirements: Oklahoma requires a remote business to register and collect and remit sales tax by the first calendar month succeeding the month it crosses the economic nexus threshold. See SB 513 for more details.
  • Remote sellers FAQs
  • SB513
  • HB1019

Pennsylvania 

Enforcement date:
July 1, 2019

Included transactions:
Gross sales of products and services in the commonwealth, including sales by agents, representatives, or subsidiaries

Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold

Trigger:
Sales only

Sales/transactions threshold:
$100,000

Evaluation period:
Threshold applies to sales in the prior 12 months

Additional information:

  • The threshold did not include exempt sales or services through June 30, 2019, under a different remote seller sales tax requirement.
  • Registration requirements: If total Pennsylvania sales for 2019 exceed the threshold, a remote seller must collect and remit PA sales tax for taxable starting April 1, 2020. The first quarter of each year is set aside for businesses to tabulate their total Pennsylvania sales from the previous calendar year in order to determine their sales tax exposure. See Answers to Economic Nexus for more details.
  • Sales and use tax bulletin

Rhode Island

Enforcement date:
July 1, 2019

Included transactions:
Gross revenue from sales of tangible personal property, prewritten computer software delivered electronically or by load and leave, vendor-hosted prewritten computer software, specified digital products, and/or taxable services delivered into the state

Treatment of exempt transactions:
Exempt sales are included but exempt services are not included in the threshold

Trigger:
Sales or transactions

Sales/transactions threshold:
$100,000 or 200 transactions

Evaluation period:
Threshold applies to the preceding calendar year

Additional information:

  • Registration requirements: Rhode Island requires a remote business to register and collect and remit sales tax on January 1 of the year following the calendar year they crossed the economic nexus threshold. Different requirements apply if the threshold was passed in 2018. See ADV_2019_11 for more details.
  • Remote sellers information
  • SB 251A and HB5278A

South Carolina 

Enforcement date:
November 1, 2018

Included transactions:
Gross revenue from sales of tangible personal property, electronically transferred products, or services delivered into the state

Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold 

Trigger:
Sales only

Sales/transactions threshold:
$100,000

Evaluation period:
Threshold applies to the previous or current calendar year

Additional information:

  • Registration requirements: Remote businesses that cross the economic nexus threshold on or after October 1, 2018, are responsible for remitting the sales and use tax for all taxable sales made into South Carolina beginning the first day of the second calendar month after economic nexus is established. See SC Revenue Ruling #18-14 for more details.
  • Sales and use tax for remote sellers
  • Remote sellers FAQs

South Dakota 

Enforcement date:
November 1, 2018

Included transactions:
Gross revenue from sales of tangible personal property, electronically delivered products, or services into the state

Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold 

Trigger:
Sales or transactions

Sales/transactions threshold:
$100,000 or 200 transactions

Evaluation period:
Threshold applies to the previous or current calendar year

Additional information:

  • Registration requirements: South Dakota requires remote businesses to register and collect and remit South Dakota sales tax from the moment they cross the economic nexus threshold forward. See Remote Seller Bulletin for more details.
  • Remote sellers information

Tennessee

Enforcement date:
July 1, 2019

Included transactions:
Sales to customers in Tennessee (except for resales)

Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold calculation; sales for resale are excluded; sales made through an online marketplace are excluded effective October 1, 2020

Trigger:
Sales only

Sales/transactions threshold:
Prior to October 1, 2020: $500,000
As of October 1, 2020: 100,000 

Evaluation period:
Threshold applies to the previous 12-month period

Additional information:


Texas 

Enforcement date:
October 1, 2019

Included transactions:
Gross revenue from sales of tangible personal property and services into the state (i.e., total Texas revenue)

Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold 

Trigger:
Sales only

Sales/transactions threshold:
$500,000

Evaluation period:
Threshold applies to the previous 12 months, with the initial 12 calendar months beginning July 1, 2018 through June 30, 2019

Additional information:

  • Registration requirements: A remote business must register with the Texas Comptroller no later than the first day of the fourth month after the month it crossed the economic nexus threshold. More details. See 34 Texas Administrative Code §3.286 for more details.
  • Resources for sellers after Wayfair
  • HB 2153

Utah 

Enforcement date:
January 1, 2019

Included transactions:
Gross revenue from the sales of tangible personal property, any product transferred electronically, or services delivered into the state

Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold 

Trigger:
Sales or transactions

Sales/transactions threshold:
$100,000 or 200 transactions

Evaluation period:
Threshold applies to the previous or current calendar year

Additional information:

  • Registration requirements: Utah hasn’t specified how soon a remote business must register once it crosses the economic nexus threshold. It could be as early as the next transaction.  
  • Remote sellers information
  • SB 2001

Vermont 

Enforcement date:
July 1, 2018

Included transactions:
Sales of tangible personal property, products transferred electronically, or services in the state, provided the retailer regularly or systematically solicits sales from in-state customers

Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold. However, businesses that only sell tax-exempt items into Vermont aren’t required to register for a sales tax account.

Trigger:
Sales or transactions

Sales/transactions threshold:
$100,000 or 200 transactions

Evaluation period:
Threshold applies to the preceding 12-month period and should be reevaluated quarterly

Additional information:

  • Registration requirements: A remote business must register to collect and remit Vermont sales tax within 30 days after crossing the economic nexus threshold. Sellers must determine whether the threshold has been met in Vermont at the end of each quarter. See Wayfair FAQs for more details.
  • South Dakota v. Wayfair
  • H.873

Virginia 

Enforcement date:
July 1, 2019

Included transactions:
Gross revenue from retail sales and taxable services into the commonwealth, including sales made by members of same controlled group of corporations; excludes sales for resale

Treatment of exempt transactions:
Exempt sales (except resales) are included in the threshold; exempt services are excluded

Trigger:
Sales or transactions

Sales/transactions threshold:
$100,000 or 200 transactions

Evaluation period:
Threshold applies to the current or previous calendar year

Additional information:


Washington

Enforcement date:
October 1, 2018 

Included transactions:
- Cumulative gross receipts from retail sales and taxable services into the state through December 31, 2019.
- Cumulative gross annual income in Washington from January 1, 2020, forward.

Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold; resales are included effective January 1, 2020

Trigger:
Sales only

Sales/transactions threshold: 
$100,000 

Evaluation period:
Threshold applies to the previous or current calendar year

Additional information:

  • Until July 1, 2019, remote sellers with between $10,000 and $100,000 in sales in the state and fewer than 200 transaction have a choice: Collect and remit sales tax or comply with use tax reporting requirements for non-collecting sellers. Effective July 1, 2019, the non-collecting seller use tax reporting option is eliminated.
  • Washington also enforces economic nexus for its business and occupation (B&O) tax on gross receipts.
  • Registration requirements: A remote business must register to collect and remit Washington sales tax on the first day of the month that starts at least 30 days after crossing the threshold. See Registration requirements for out-of-state businesses for more details.
  • Remote sellers
  • Registration thresholds

Washington, D.C.

Enforcement date: 
January 1, 2019

Included transactions:
Gross receipts from all retail sales delivered into the District 

Treatment of exempt transactions:
With the exception of sales for resale, exempt sales and exempt services are included in the threshold 

Trigger:
Sales or transactions

Sales/transactions threshold:
$100,000 or 200 transactions

Evaluation period:
Threshold applies to sales in the previous or current calendar year

Additional information:

  • Registration requirements: A remote business must register and start collecting sales tax in the District of Columbia “as soon as its sales into the District exceed” the economic nexus threshold. See the OTR FAQs (#4) for more details.
  • OTR Notice 2019-02
  • B22-1070

West Virginia

Enforcement date:
January 1, 2019

Included transactions:
Gross sales of tangible personal property or services into the state

Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold 

Trigger:
Sales or transactions

Sales/transactions threshold:
$100,000 or 200 transactions

Evaluation period:
Threshold applies to the preceding or current calendar year

Additional information:


Wisconsin 

Enforcement date:
October 1, 2018

Included transactions:
Annual gross sales of tangible personal property and services into the state

Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold; businesses that only make nontaxable sales in Wisconsin are not required to register for a sales tax account

Trigger:
Sales or transactions

Sales/transactions threshold:
$100,000 or 200 transactions

Evaluation period:
Previous or current calendar year (based on remote seller's taxable year for federal income tax purposes)

Additional information:


Wyoming

Enforcement date:
February 1, 2019

Included transactions:
Gross revenue from sales of tangible personal property, admissions, or services delivered into the state (includes taxable, exempt, and wholesale sales)

Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold count

Trigger:
Sales or transactions

Sales/transactions threshold:
$100,000 or 200 transactions

Evaluation period:
Threshold applies to the current or immediately preceding calendar year

Additional information:

  • Registration requirements: A remote business could be required to register and begin collecting Wyoming sales tax as soon as it crosses the economic nexus threshold. 
  • Remote sellers information
  • HB 19

Stay ahead of changing sales tax legislation

As you can see, economic nexus laws can vary quite a bit from state to state, so it’s important for businesses to understand the laws in full and review sales activity frequently to determine when and where they have a new obligation. As your business grows, ensure you have a partner like Avalara in place to help you scale. 

Economic nexus is one of the many ways your business can establish nexus: an obligation to register, collect, and remit sales tax in a jurisdiction. To see other sales tax laws and nexus rules by state, view our sales tax laws by state resource.

If you’ve determined you have a new sales tax obligation due to economic nexus laws, the typical next step is to register your business with the jurisdiction. Avalara Licensing can help with that.