Blog LBMC

Print Divider Print Divider Branding
 

New Sales Tax Economic Nexus Standards

11/02/2018  |  By: Brian Strahle, Senior Manager, State Tax Recovery & Risk Management

Share

Social Logo Social Logo Social Logo Social Logo

When reviewing the new sales tax economic nexus chart to determine the impact on your company, comparing your company’s sales-by-state to the threshold on the chart is just the beginning. The key is to comply without creating unintended consequences. Your company must take the proper steps to address the domino effect of issues created by the new sale tax nexus landscape before your company registers and starts collecting sales tax in new states.

State  Sales Tax Economic Nexus Threshold 
(Based on Previous 12-months or Calendar Year)
Enforcement Date
Alabama $250,000 in sales 10/1/2018
Alaska No Sales Tax N/A
Arizona No threshold yet
Arkansas in-process (considering $100,000 or 200 transactions)
California in-process (considering $500,000)
Colorado  $100,000 in sales or 200 transactions 12/1/2018
Connecticut $250,000 in sales AND 200 transactions 12/1/2018
D.C. No threshold yet
Delaware No Sales Tax N/A
Florida No threshold yet
Georgia $250,000 in sales or 200 transactions 1/1/2019
Hawaii $100,000 in sales or 200 transactions 7/1/2018
Idaho No threshold yet
Illinois $100,000 in sales or 200 transactions 10/1/2018
Indiana $100,000 in sales or 200 transactions 10/1/2018
Iowa $100,000 in sales or 200 transactions 1/1/2019
Kansas No threshold yet
Kentucky $100,000 in sales or 200 transactions 10/1/2018
Louisiana $100,000 in sales or 200 transactions 1/1/2019
Maine $100,000 in sales or 200 transactions 7/1/2018
Maryland $100,000 in sales or 200 transactions 10/1/2018
Massachusetts $500,000 in sales AND 100 transactions 10/1/2017
Michigan $100,000 in sales or 200 transactions 10/1/2018
Minnesota $100,000 in sales in at least 10 transactions or 100 transactions 10/1/2018
Mississippi $250,000 in sales 9/1/2018
Missouri No threshold yet
Montana No Sales Tax N/A
Nebraska $100,000 in sales or 200 transactions 1/1/2019
Nevada $100,000 in sales or 200 transactions 10/1/2018
New Hampshire No Sales Tax N/A
New Jersey $100,000 in sales or 200 transactions 11/1/2018
New Mexico No threshold yet
New York $300,000 in sales AND 100 transactions currently unenforced
North Carolina $100,000 in sales or 200 transactions 11/1/2018
North Dakota $100,000 in sales or 200 transactions 10/1/2018 or 60 days after retailer meets threshold, whichever is later
Ohio $500,000 in sales 1/1/2018
Oklahoma $10,000 in sales 7/1/2018
Oregon No Sales Tax N/A
Pennsylvania $10,000 in sales 4/1/2018
Rhode Island $100,000 in sales or 200 transactions 8/17/2017
South Carolina $100,000 in sales 11/1/2018
South Dakota $100,000 in sales or 200 transactions 11/1/2018
Tennessee $500,000 in sales on-hold due to litigation
Texas $500,000 in sales 10/1/2019 (PROPOSED)
Utah $100,000 in sales or 200 transactions 1/1/2019
Vermont  $100,000 in sales or 200 transactions 7/1/2018
Virginia No threshold yet
Washington $100,000 in sales or 200 transactions 10/1/2018
West Virginia $100,000 in sales or 200 transactions 1/1/2019
Wisconsin $100,000 in sales or 200 transactions 10/1/2018
Wyoming $100,000 in sales or 200 transactions 2/1/2019

Contact your LBMC client service partner or Brian Strahle, Senior Manager, State Tax Recovery & Risk Management, at brian.strahle@lbmc.com or 615.309.2797 to determine the impact on your company.

LBMC tax tips are provided as an informational and educational service for clients and friends of the firm. The communication is high-level and should not be considered as legal or tax advice to take any specific action. Individuals should consult with their personal tax or legal advisors before making any tax or legal-related decisions. In addition, the information and data presented are based on sources believed to be reliable, but we do not guarantee their accuracy or completeness. The information is current as of the date indicated and is subject to change without notice.

Posted in: Tax
Tagged with: State and Local Tax, Tax