Remote Seller State Guidance

 

Many states have enacted economic nexus laws that require remote sellers to collect and remit sales tax if they exceed certain thresholds.  If you have a physical presence in a state, you are not a Remote Seller and are required to register in that state regardless of the amount of sales.

Are you a Remote Seller?  A Remote Seller is generally a seller that does not have a physical presence in a state but who sells products or services for delivery into that state. 

If you are a remote seller and your sales of products for delivery into a state meet or exceed the threshold for a state, you are required to register to collect and remit sales tax for that state.    

Economic nexus laws apply to any business that makes sales into states in which they have no physical presence but meet the state’s sales and/or transactions thresholds.

Items to note when reviewing the requirements:

  • Many states base their threshold on sales OR transactions, while some states base their threshold on sales AND transactions.

  • A state may base its sales threshold on gross sales, gross revenues, retail sales or taxable sales. Many states do not distinguish between taxable and non-taxable sales when determining if a threshold is met.

If you know that you will be making sales into a state, you may choose to register to collect and remit that state’s sales tax at any time.

IMPORTANT NOTE: This is general guidance and is not legal advice. Nothing in this chart overrides an individual state’s laws.  For specific state guidance, contact that state.  

This chart provides you a summary of the Remote Seller thresholds and compliance dates as of January 11, 2023. 

 

State Registration Guidelines for:

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Do you qualify for free sales tax calculation and reporting services?   Learn more before you register

 

Revenue Department Website Remote Seller Compliance Date Remote Seller Threshold State Guidance for Remote Sellers Notes Streamlined Member State Information
Alabama 10/1/2018 Sales of TPP of more than $250,000 in prior calendar year; No transaction threshold

Seller must also engage in or conduct certain other activities in Alabama in addition to having more than $250,000 in sales. 
Remote Seller Press Release  (7/3/2018)   
AL FAQs
 
Alaska 4/1/2020 Statewide gross remote sales meets or exceeds $100,000 or 200 transactions in the current or previous calendar year     Remote Seller Marketplace Facilitator 
Arizona 10/1/2019 Annual gross retail sales or income from online sales into Arizona is more than $200,000 in 2019, $150,000 in 2020 and $100,000 in 2021 and thereafter. Remote Seller Marketplace Facilitator
Arkansas 7/1/2019 Sales exceed $100,000 or 200 transactions during the current or preceding year. Remote Seller Marketplace Facilitator AR
California 4/1/2019 The total combined sales exceed $500,000 during the preceding or current calendar year Remote Seller Marketplace Facilitator
Colorado 12/1/2018 Taxable sales of more than $100,000 in past calendar year   Remote Seller Marketplace Facilitator
Connecticut 12/1/2018 7/1/2019 Threshold change: $100,000 or more in gross receipts and 200 or more retail transactions
12/1/2018 Threshold: $250,000 or more in gross receipts and 200 or more retail transactions
Remote Seller
Delaware
District of Columbia 1/1/2019 Had in the previous calendar year or will have in the current calendar year, more than $100,000 of gross receipts from retail sales or more than 200 separate retail sales  Remote Seller
Florida 7/1/2021 Taxable sales of tangible personal property in excess of $100,000 in the previous calendar year. Remote Seller Marketplace Facilitators 
Georgia 1/1/2019

Effective 1/1/2020: Gross Revenue exceeding $100,000 or 200 or more separate retail sales in the previous or current calendar year.

1/1/2019 to 12/31/2019: Gross Revenue exceeding $250,000 from retail sales or 200 or more separate retail sale transactions in the previous or current calendar year

Remote Seller HB 61
GA
Hawaii 7/1/2018 $100,000 or more in gross income or 200 or more transactions Remote Seller Marketplace Facilitator
Idaho 6/1/2019 Sales that exceed $100,000 in the current or previous year. Remote Seller Marketplace Facilitator
Illinois 10/1/2018 Either cumulative gross receipts from Illinois sales of $100,000 or more, or 200 or more separate Illinois transactions Remote Seller Marketplace Facilitators
Indiana 10/1/2018 Gross revenue exceeding $100,000 or 200 or more separate transactions in the previous calendar year or current calendar year Remote Seller  Marketplace Facilitator IN
Iowa 1/1/2019 Gross revenue from sales of $100,000 in previous or current calendar year Remote Seller Additional Remote Seller Information

Marketplace Facilitators
IA
Kansas 7/1/2021 Cumulative gross receipts in excess of $100,000 in current or preceding calendar year Remote Seller Notice 21-17 Remote Sellers (ksrevenue.org)

Notice 21-14 Marketplace Facilitators - Products (ksrevenue.org)
KS
Kentucky 10/1/2018

Gross receipts of $100,000 or more or 200 or more sales based on previous or current calendar year sales

Remote Seller KRS 139.340 (g)

Marketplace Provider
KY
Louisiana 7/1/2020 Deliver more than $100,000 of goods or services into the state or engage in 200 or more separate transactions for the delivery of good or services in the state Remote Seller  
Maine 7/1/2018 Gross revenues from Maine sales of tangible personal property, products transferred electronically, or taxable services exceeded $100,000 or at least 200 separate transactions during the current or previous calendar year Remote Seller
Maryland 10/1/2018 Gross revenue exceeds $100,000 or 200 or more separate transactions during the previous or current calendar year Remote Seller
Massachusetts 10/1/2019 Massachusetts sales exceeding $100,000 during current or previous calendar year Remote Seller Marketplace Facilitator
Michigan 10/1/2018 Taxable and non-taxable sales exceeding $100,000 or 200 or more separate transactions in the previous calendar year  Remote Seller MI RAB 2018-6 MI
Minnesota 10/1/2018

October 1, 2019: Retail sales of more than $100,000 or 200 or more separate retail transactions in any 12 consecutive months.

10/1/2018 to 9/30/2019: Retail sales of more than $100,000 in 10 or more transactions or 100 or more separate retail transactions in any 12 consecutive months.

When calculating the threshold, include all retail sales made through any Marketplace, your own website, and other sources into Minnesota. 

Do not include sales where the purchaser is buying for resale.

Remote Seller Marketplace Providers
Starting October 1, 2019, Marketplaces without a place of business in Minnesota are subject to the remote seller thresholds.
MN
Mississippi 9/1/2018 Sales exceed $250,000 for the prior 12 months Remote Seller
Missouri 1/1/2023

Gross receipts from taxable sales in the previous or current calendar year exceeding $100,000.   
For the purposes of calculating the threshold, following the close of each calendar quarter, a vendor shall determine whether the vendor met the requirements during the twelve-month period ending on the last day of the preceding calendar quarter.  If the vendor met such requirements for any such twelve-month period, such vendor shall collect and remit the tax as provided under section 144.635 for a period of not less than twelve months, beginning not more than three months following the close of the preceding calendar quarter, and shall continue to collect and remit the tax for as long as the vendor is engaged in business activities within this state, as provided for under this paragraph, or otherwise maintains a substantial nexus with this state.  (See §144.605)

 
Montana Remote Seller
Nebraska 1/1/2019 Exceeds $100,000 in Nebraska retail sales or 200 or more separate transactions for delivery into NE in the prior or current calendar year
Remote Seller Marketplace Facilitator NE
Nevada 10/1/2018 Gross revenue from retail sales greater than $100,000 or 200 or more retail sales in the prior or current year

Remote Seller Marketplace Facilitator
Press Release 9/27/2018
NV
New Hampshire
New Jersey 11/1/2018 Gross revenue exceeds $100,000 or 200 or more separate transactions in prior or current calendar year Remote Seller Marketplace Sales NJ
New Mexico
New York Gross receipts exceed $500,000 and made more than 100 sales during preceding four sales tax quarters Remote Seller Marketplace Facilitator
North Carolina 11/1/2018 Gross sales in excess of $100,000 or 200 or more separate transactions in previous or current calendar year

 

Remote Seller Marketplace Facilitator NC
North Dakota 10/1/2018 Taxable sales of $100,000 in previous or current calendar year.
Effective 7/1/2019 the threshold of 200 or more transactions was removed.
Remote Seller Marketplace Facilitators ND
Ohio 8/1/2019 Gross receipts greater than $100,000 or 200 or more transactions in the current or preceding calendar year.

R.C. 5741.01 utilizes gross receipts; however R.C. 5739.01(I) and R.C. 5739.01(B) defines “receipts” and “sales” to effectually be retail sales. Therefore, only those sales which are considered retail sales are included in the economic nexus threshold calculation.  For example, only those enumerated services in R.C. 5739.01(B)(3) are utilized when determining the economic nexus threshold.  Additionally, “retail sales” do not include “sales for resale”.

Remote Seller Marketplace Facilitator OH
Oklahoma 7/1/2018 Effective January 1, 2023: $100,000 or more in taxable sales of products during the previous or current calendar year.
From November 1, 2019 through December 31, 2022:   $100,000 or more in taxable sales of tangible personal property during the previous or current calendar year.
Prior to November 1, 2019: $10,000 or more in sales subject to sales or use tax during previous 12 months
Remote Seller Remote Seller Guidance
Marketplace Facilitators Guidance 
OK
Oregon Remote Seller
Pennsylvania 7/1/2019 More than $100,000 in gross sales in the previous twelve months.  Remote Seller
Puerto Rico
Rhode Island 7/1/2019 Gross revenues of $100,000 or more or 200 or more separate transactions in the previous calendar year Remote Seller

Marketplace Facilitator

RI
South Carolina 11/1/2018 Gross Revenue from sales exceeds $100,000 in South Carolina in the previous or current calendar year Remote Seller Marketplace Facilitator
South Dakota 11/1/2018

Effective 7/1/2023 Gross revenue from sales exceeding $100,000 in the previous or current calendar year
Effective 11/1/2018 Gross revenue from sales exceeding $100,000 or 200 or more separate transactions in previous or current calendar year

Remote Seller Marketplace Facilitator SD
Tennessee 10/1/2019

Retail sales exceeding $500,000 during the previous 12-months.  Effective 10/1/2020 the retail sales threshold is reduced to $100,000 during the previous 12 months.

Remote Seller Notices 19-0419-0520-14, and 20-15 TN
Texas 10/1/2019 Total Texas revenue of $500,000 or more in the preceding twelve calendar months Remote Seller Marketplace Facilitator
Utah 1/1/2019 Gross revenue of more than $100,000 or more than 200 separate transactions during previous or current calendar year Remote Seller Marketplace Facilitator UT
Vermont 7/1/2018 Sales of at least $100,000 or 200 individual transactions during any preceding 12 month period Remote Seller VT
Virginia 7/1/2019 In the previous or current calendar year, either receives greater than $100,000 in gross revenue from retail sales, or engages in 200 or more separate retail sales transactions, or any software provider acting on behalf of such dealer. Remote Seller Marketplace Facilitators
Washington 10/1/2018 Effective January 1, 2020: Gross income of the business exceeding $100,000 in preceding or current year.

October 1, 2018 through December 31, 2019: Gross retail sales exceeding $100,000 in preceding or current year

From October 1, 2018 through March 14, 2019, sellers that have 200 or more transactions but do not exceed the $100,000 retail sales were required to collect and report sales tax to Washington.  

Remote sellers with annual retail sales of $10,000 or more were required to make an election to collect sales tax or do use tax notice and reporting between January 1, 2018 and June 30, 2019 if the remote seller was not directly required to collect sales or use tax. As of July 1, 2019 the requirement to make an election was eliminated.

 
Remote Seller Marketplace Facilitator

Remote Seller Help: (360) 704-5900
SSB 5581 effective 3/14/2019

WA
West Virginia 1/1/2019 Sales equal to or exceeding $100,000 or makes West Virginia sales in 200 or more separate transactions for an immediately preceding calendar year or a current calendar year.
 
Remote Seller Marketplace Facilitator WV
Wisconsin 10/1/2018 Gross sales exceed $100,000 in the previous or current calendar year.
Effective 2/20/2021, the threshold of 200 or more transactions was removed.

Remote Seller Marketplace Providers WI
Wyoming 2/1/2019 Gross revenue from sales of TPP, admissions or services of more than $100,000 or 200 or more separate transactions in prior or current year Remote Seller Marketplace Facilitators WY