Remote Seller Guidelines

 

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 sells products or services for delivery
into a state in which that seller does not have a physical presence or other legal requirement to be registered
other than because they exceed the state’s economic nexus threshold. 

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.

This chart provides you a summary of the Remote Seller thresholds and compliance dates as of December 4, 2018. 

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.  

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
Arizona
Arkansas A remote seller is an out-of-state seller that has no physical presence in Arkansas. Remote Seller AR
California
Colorado 12/1/2018 Gross revenue from sales of TPP or services delivered into Colorado of more than $100,000 in prior or current calendar year or 200 or more separate transactions Remote Seller News Release     
Regulation 39-26-204(2)
Connecticut 12/1/2018 $250,000 or more in gross receipts or 200 or more retail transactions Remote Seller
Delaware
District of Columbia
Florida
Georgia 1/1/2019

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
Idaho 7/1/2018 The out-of-state seller has an agreement with an Idaho retailer to refer potential buyers to the out-of-state seller for a commission, and the total sales to the Idaho buyers exceeded $10,000 in the previous year
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
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   IN
Iowa 1/1/2019 Gross revenue from sales of $100,000 or more or 200 or more separate sales transactions in previous or current calendar year Remote Seller Additional Remote Seller Information
IA
Kansas 10/1/2018 Remote sellers with no physical presence in Kansas are required to collect and remit the applicable sales or use tax on sales delivered into Kansas. 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 Additional Tax Answers for KY

KRS 139.340 (g)
KY
Louisiana 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 Massachusetts sales exceeding $500,000 and 100 or more transactions during current or previous calendar year Remote Seller
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

Retail sales of more than $100,000 in 10 or more transactions or 100 or more separate retail transactions in any 12 consecutive months

Remote Seller 7/25/2018 News Release MN
Mississippi 9/1/2018 Sales exceed $250,000 for the prior 12 months Remote Seller
Missouri
Montana Remote Seller
Nebraska 1/1/2019 More than $100,000 in sales or 200 or more separate transactions for delivery into NE annually
Remote Seller 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 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 NJ
New Mexico
New York $300,000 or 100 transactions
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 NC
North Dakota 10/1/2018 Taxable sales of $100,000 or more or 200 or more separate transactions in previous or current calendar year Remote Seller ND
Ohio   Remote Seller   OH
Oklahoma 7/1/2018 $10,000 or more in sales subject to sales or use tax during previous 12 months
Remote Seller OK
Oregon
Pennsylvania 3/1/2018 Taxable sales totaling $10,000 or more to Pennsylvania customers in the previous calendar year  Remote Seller
Puerto Rico
Rhode Island 8/1/2017 Gross revenues of $100,000 or more or 200 or more separate transactions in the previous calendar year Remote Seller RI
South Carolina 11/1/2018 Exceeds sales of $100,000 in South Carolina in the previous or current calendar year Remote Seller
South Dakota 11/1/2018 Gross revenue from sales exceeding $100,000 or 200 or more separate transactions in previous or current calendar year Remote Seller SD
Tennessee

As detailed in Important Notices 17-01 and 17-12, Tennessee did establish an economic nexus rule, Rule 129(2).  However, in May 2017, the Tennessee General Assembly passed legislation providing that the Department of Revenue is prohibited from collecting sales or use taxes authorized under Rule 129(2) until the court’s ruling has been fully reviewed and Rule129(2) has been approved by the general assembly pursuant to § 4-5-226.

Remote Seller TN
Texas Remote Seller
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 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
Washington 10/1/2018 Gross retail sales exceeding $100,000 or 200 or more transactions in preceding or current year

Remote sellers with less than 200 transactions and annual retail sales between $10,000 and $100,000 are required to make an election to collect sales tax or do use tax notice and reporting starting January 1, 2018.
Remote Seller

Remote Seller Help: (800) 426-1776

WA
West Virginia 1/1/2019 Delivers more than $100,000 of goods or services into West Virginia or engages in 200 or more separate transactions for the delivery of goods and services into West Virginia, during calendar year 2018 Remote Seller WV
Wisconsin 10/1/2018 Gross sales exceed $100,000 or 200 or more separate transactions in the previous or current year

Remote Seller 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 WY