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:
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|
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.
Press Release (7/3/2018)
|Arkansas||A remote seller is an out-of-state seller that has no physical presence in Arkansas.||Remote Seller||AR|
|California||4/1/2019||Sales exceed $100,000 or 200 or more separate transactions during the preceding or current calendar year||Remote Seller|
|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||
|Connecticut||12/1/2018||$250,000 or more in gross receipts or 200 or more retail transactions||Remote Seller|
|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|
Gross Revenue exceeding $250,000 from retail sales or 200 or more separate retail sale transactions in the previous or current calendar year
|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
|Kansas||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, as provided under the constitution and laws of the United States.||KSA 79-3702(h)||KS|
Gross receipts of $100,000 or more or 200 or more sales based on previous or current calendar year sales
Additional Tax Answers for KY
KRS 139.340 (g)
|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|
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|
More than $100,000 in sales or 200 or more separate transactions for delivery into NE annually
Gross revenue from retail sales greater than $100,000 or 200 or more retail sales in the prior or current year
Press Release 9/27/2018
|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 York||Gross receipts exceed $300,000 and made more than 100 sales during preceding four sales tax quarters||Remote Seller|
Gross sales in excess of $100,000 or 200 or more separate transactions in previous or current calendar year
|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|
$10,000 or more in sales subject to sales or use tax during previous 12 months
|Pennsylvania||7/1/2019||More than $100,000 in gross sales in the previous twelve months.||Remote Seller|
|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|
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.
|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|
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 Help: (800) 426-1776
|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|
Gross sales exceed $100,000 or 200 or more separate transactions in the previous or current year
|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|