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New Sales Tax Economic Nexus Standards

01/17/2019  |  By: Brian McCuller, JD, CPA, Shareholder, Practice Leader Tax

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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 $100,000 in sales or 200 transactions 4/1/2019
Colorado  $100,000 in sales or 200 transactions 12/1/2018 (grace period until 5/31/19)
Connecticut $250,000 in sales AND 200 transactions 12/1/2018
D.C. $100,000 in sales or 200 transactions 1/1/2019
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 (only applies to remote internet sellers that establish physical nexus by placing in-state software (“apps”) and ancillary data (“cookies”) on in-state devices) 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 6/21/2018
North Carolina $100,000 in sales or 200 transactions 11/1/2018
North Dakota $100,000 in sales or 200 transactions 10/1/2018
Ohio $500,000 in sales (only applies to seller using in-state software to sell or lease tangible property; or to remote sellers that provide or have an agreement with another person to provide a content distribution network in Ohio to accelerate or enhance delivery of the seller’s website to customers in the state) 1/1/2018
Oklahoma $10,000 in sales (remote sellers can choose to collect and remit sales taxes or comply with notice and reporting requirements) 7/1/2018
Oregon No Sales Tax N/A
Pennsylvania For retailers with < $100,000 in PA sales the threshold is $10,000 in sales (remote sellers can choose to collect and remit sales taxes or comply with notice and reporting requirements 4/1/2018
For retailers with > $100,000 in PA sales, must collect sales tax 7/1/2019
Rhode Island $100,000 in sales or 200 transactions (remote sellers can choose to collect and remit sales taxes or comply with notice and reporting requirements) 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
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 to determine the impact on your company, use our contact form and someone will contact you shortly.

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