Sales and Use Tax Post-Wayfair Decision

2020 Whole Ball Of Tax

Economic Nexus

This chart indicates whether a state has economic nexus provisions. In general, economic nexus means that if a remote seller passes a state’s economic threshold for total revenue or number of transactions in that state, they are legally obligated to collect and remit sales and use tax in that state. No physical presence is required.

Note that state nexus statutes are subject to federal constitutional restrictions. However, in South Dakota v. Wayfair, Inc. (Dkt. No. 17-494, June 21, 2018), the U.S. Supreme Court over-ruled Quill Corp. v. North Dakota (504 U.S. 298 (1992)) and held that physical presence is no longer required to establish sales and use tax nexus.

State Economic Nexus Comments Citation CCH¶
Alabama Yes Out-of-state sellers who lack an Alabama physical presence but are making retail sales of tangible personal property into the state have a substantial economic presence in Alabama for sales and use tax purposes and are required to register for a license and to collect and remit tax, when:
(a) the seller's retail sales of tangible personal property sold into the state exceed $250,000 per year based on the previous calendar year's sales; and
(b) the seller conducts one or more of the activities described in Section 40-23-68, Code of Alabama.
We recommend you reference cited authority for more information.
Ala. Code §40-2-11(7)(b), Ala. Code §40-23-68, Ala. Code §40-23-190, Ala. Admin. Code r. 810-6-2-.90.03 Alabama 60-025
Arizona Yes Effective October 1, 2019, an economic nexus test is established for both remote sellers and marketplace facilitators.
A remote seller, not facilitated by a marketplace facilitator, will be required to pay TPT on retail sales of property if their gross proceeds or gross income with Arizona customers is more than:

  • $200,000 for 2019;
  • $150,000 for 2020; and
  • $100,000 for 2021 and thereafter.
A marketplace facilitator will be required to pay TPT on retail sales of property if their gross proceeds or gross income with Arizona customers is more than $100,000.
We recommend you reference cited authority for more information.
Ariz. Rev. Stat. §42-5043 Arizona 60-025
Arkansas Yes Remote sellers and marketplace facilitators are required to collect sales tax if, in the previous or current calendar year, it had aggregate sales within the state, or deliveries to locations within the state, exceeding: $100,000; or 200 transactions. Ark. Code. Ann. §26-52-103, Ark. Code. Ann. §26-53-124, Ark. Reg. GR-5 Arkansas 60-025
Califoria Yes Applicable April 1, 2019, retailers located outside California (remote sellers) are required to register with the CDTFA and collect California use tax if, in the preceding or current calendar year, the total combined sales of tangible personal property for delivery in California by the retailer and all persons related to the retailer exceed $500,000.
We recommend you reference cited authority for more information.
Cal. Rev. & Tax. Code §6203 California 60-025
Colorado Yes Remote retailers are required to collect Colorado sales tax if they have $100,000 or more in annual sales into Colorado. Retailers must also collect state-collected local sales tax and special district tax. Retailers should contact home rule cities for guidance.
We recommend you reference cited authority for more information.
Colo. Rev. Stat. §39-26-102 Colorado 60-025
Connecticut Yes Effective July 1, 2019, out-of-state retailers that make retail sales of tangible personal property or services from outside Connecticut to a destination within Connecticut must collect and remit sales or use tax if:
—they made at least 200 Connecticut sales during the preceding 12-month period ending September 30; and
—their gross receipts are $100,000 or more during that period.
We recommend you reference cited authority for more information.
Conn. Gen. Stat. §12-407(a)(12) and (a)(15), Special Notice 2018(5.1) Connecticut 60-025
District of Columbia Yes Statute includes economic sales thresholds.
We recommend you reference cited authority for more information.
D.C. Code Ann. §47-2202, D.C. Code Ann. §47-3931 District of Columbia 60-025
Florida No Florida 60-025
Georgia Yes Effective for calendar year 2019, a remote seller is a “dealer“ with nexus if they have in the previous or current calendar year from retail sales of tangible personal property for electronic or physical delivery within Georgia, or for use, consumption, distribution, or storage in Georgia:
(1) more than $250,000 in gross revenue; or
(2) at least 200 separate retail sales of tangible personal property.

Effective January 1, 2020, the thresholds are:
(1) more than $100,000 in gross revenue; or
(2) at least 200 separate retail sales of tangible personal property.
We recommend you reference cited authority for more information.
Ga. Code. Ann. §48-8-2(8)(M.1)-(M.2), Ga. Code. Ann. §48-8-30(c.1)(1) Georgia 60-025
Hawaii Yes Effective July 1, 2018, and applicable to taxable years beginning after 2017, a business is subject to general excise tax if, in the current or immediately preceding calendar year, it makes:
- $100,000 or more in Hawaii sales of tangible personal property, services, or intangible property; or
- 200 or more separate Hawaii sales of tangible personal property, services, or intangible property.

We recommend you reference cited authority for more information.
Sec. 1, Act 41 (S.B. 2514), Laws 2018 Hawaii 60-025
Idaho Yes Remote sellers must collect and remit state-level Idaho sales and use tax if they (1) lack physical presence in Idaho; and (2) have over $100,000 in Idaho sales in the previous or current calendar year.

We recommend you reference cited authority for more information.
Idaho Code §63-3611, Idaho Code §63-3620E Idaho 60-025
Illinois Yes Remote retailers are required to collect tax use and service use tax if either threshold is met for a 12-month period:
(1) their sales of property to customers in Illinois are $100,000 or more; or
(2) they enter into 200 or more sales transactions in Illinois. Effective July 1, 2020, the economic nexus thresholds trigger a retailers’ occupation tax collection requirement for remote retailers in place of the use tax collection requirement.

We recommend you reference cited authority for more information.
35 ILCS 105/2, 35 ILCS 110/2, 35 ILCS 120/2 Illinois 60-025
Indiana Yes Sellers are liable for collecting Indiana sales tax if one of two sales thresholds are met for 12 months. Sellers meet the threshold for a given period if:
—their gross revenue from sales into Indiana is more than $100,000; or
—they enter into 200 or more separate transactions in Indiana.
Effective July 1, 2019, marketplace facilitators are retail merchants when they engage in certain activities for sellers on their marketplace. The marketplace may be physical or on the internet. A marketplace facilitator must collect sales tax if:
—it has economic nexus with Indiana; and
—the retailer itself does not have nexus with Indiana.
We recommend you reference cited authority for more information.
Ind. Code §6-2.5-3-1, Ind. Code §6-2.5-2-1 Indiana 60-025
Iowa Yes, effective January 1, 2019, retailers are required to collect Iowa sales tax if they have gross revenue from Iowa sales of $100,000 or more, or make 200 or more separate Iowa sales transactions, in the previous or current calendar year. Note that effective July 1, 2019, the 200 separate sale threshold for remote sellers is eliminated. Therefore, remote sellers will only be subject to the $100,000 annual taxable sales threshold. In South Dakota v. Wayfair, Inc. (Dkt. No. 17-494, June 21, 2018), the U.S. Supreme Court overruled Quill Corp. v. North Dakota (504 U.S. 298 (1992)) and held that physical presence is no longer required to establish sales and use tax nexus.

We recommend you reference cited authority for more information.
Iowa Code §423.14A Iowa 60-025
Kansas No Kan. Stat. Ann. §79-3702(h), Kan. Stat. Ann. §79-3705c Kansas 60-025
Kentucy Yes Effective July 1, 2018, remote sellers must collect Kentucky sales and use tax if, in the previous or current calendar year:
(1) their gross receipts from Kentucky sales exceeds $100,000; or
(2) they have at least 200 separate in-state sales transactions of property.

Effective July 1, 2019, the economic nexus thresholds also apply to (1) remote retailers who sell through marketplaces, and (2) marketplace providers (through their own sales or from sales made in their marketplaces).

We recommend you reference cited authority for more information.
Ky. Rev. Stat. Ann. §139.340, Ky. Rev. Stat. Ann. §139.450 Kentucky 60-025
Louisiana Yes Applies to remote dealers with sales into the state in excess of $100,000 or 200 or more separate transactions. La. Rev. Stat. Ann. §47:301, La. Rev. Stat. Ann. §47:304 Louisiana 60-025
Maine Yes Remote sellers with either 200 or more taxable transactions in Maine or sales exceeding $100,000 in the state, must collect tax. Me. Rev. Stat. Ann. tit. 36, §1951-B Maine 60-025
Maryland Yes A remote seller has economic nexus if during the current or prior year:
gross revenue from sales of property or services into Maryland is more than $100,000; or
property or services are sold into Maryland 200 or more times.
Reg. Sec. 03.06.01.33 Maryland 60-025
Massachusetts Yes Sellers with over $500,000 in sales and more than 100 transactions into the state in the preceding calendar year, must register, collect and remit.
Effective October 1, 2019, remote retailers must register and collect Massachusetts sales or use tax if, in the previous or current year, their annual gross sales into Massachusetts exceed $100,000.

We recommend you reference cited authority for more information.
Mass Regs. Code tit. 830, §64H.1.7 Massachusetts 60-025
Michigan Yes After September 30, 2018, remote sellers with over $100,000 in sales to Michigan or 200 or more transactions in the prior calendar year, have nexus.

We recommend you reference cited authority for more information.
Revenue Administrative Bulletin No. 2018-16 Michigan 60-025
Minnesota Yes Remote retailers must collect and remit tax if, over the prior 12-month period, they make either:
(1) 200 or more retail sales shipped to Minnesota; or
(2) $100,000 or more in retail sales shipped to Minnesota.

We recommend you reference cited authority for more information.
Minn. Stat. §297A.66 Minnesota 60-025
Missippi Yes Nexus may exist for sellers lacking a physical presence in Mississippi if they "purposefully or systematically exploit the Mississippi market" and if their sales into the state exceed $250,000 for the prior 12 months. Exploiting the Mississippi market includes direct mail marketing, telemarketing, many types of advertising, and online emails and messaging to Mississippi customers.

We recommend you reference cited authority for more information.
Miss. Code. Ann. §27-67-3, Miss. Code. Ann. §27-67-4(2), Miss. Rule 35.IV.3.09 Mississippi 60-025
Missouri No Missouri 60-025
Nebraska Yes Remote sellers with over $100,000 in sales or 200 or more transactions in the state annually, must collect tax.

We recommend you reference cited authority for more information.
Collection of Sales Tax by Remote Sellers Nebraska 60-025
Nevada Yes A remote seller has economic nexus if during the current or prior calendar year:
—gross revenue from sales of property or services into Nevada is more than $100,000; or
—property or services are sold into Nevada 200 or more times.

We recommend you reference cited authority for more information.
Nev. Rev. Stat. §372.105, Nev. Rev. Stat. §374.110, Nev. Rev. Stat. §377.040 Reg. No. R189-18 Nevada 60-025
New Jersey Yes Sales tax collection is required in New Jersey if, during the current or prior calendar year, a remote seller exceeds:
(i) $100,000 in gross revenue from delivery of tangible personal property, specific digital products, or services into New Jersey; or
(ii) 200 or more separate transactions in New Jersey.

We recommend you reference cited authority for more information.
New Jersey Division of Taxation, N.J. Stat. Ann. §54:32B-3.5, TB-83 New Jersey 60-025
New Mexico Yes N.M. Stat. Ann. §7-9-4 New Mexico 60-025
New York Yes A business that has no physical presence in New York, but meets the following requirements in the immediately preceding four sales tax quarters, is required to register and collect/remit sales tax:
(i) makes more than $500,000 in sales of tangible personal property delivered in New York, and
(ii) makes more than 100 sales of tangible personal property delivered in New York.

We recommend you reference cited authority for more information.
N.Y. Tax Law, §1101(b)(8)(i)(E), N.Y. Tax Law, §1101(b)(8)(iv), Important Notice N-19-1 New York 60-025
North Carolina Yes Effective November 1, 2018, or 60 days after a remote seller meets the threshold, whichever is later, a remote seller is required to register, and collect and remit North Carolina sales and use tax if, in the previous or current calendar year, the retailer had one or more of the following: (1) the remote seller has gross sales in excess of $100,000 sourced to North Carolina; or (2) the remote seller has 200 or more separate transactions sourced to North Carolina (“threshold”).

We recommend you reference cited authority for more information.
N.C. Gen. Stat. §105-164.8, Directive SD-18-6 North Carolina 60-025
North Dakota Yes Out-of-state sellers with no physical presence in North Dakota are subject to sales and use tax if, in the previous calendar year or the current calendar year the seller's gross sales from the sale of tangible personal property and other taxable items delivered in North Dakota exceed $100,000.
Such a seller is required to remit sales or use tax and must follow all applicable procedures and requirements as if the seller has a physical presence in North Dakota.

Remote sellers must register and begin collecting North Dakota sales and use tax on the earlier of:
-60 days after meeting the threshold, or
- the following calendar year.

NOTE: Previously, North Dakota had a 200 or more separate transactions threshold, too. It was eliminated retroactively to tax years beginning on or after January 1, 2019.

Effective October 1, 2019, a marketplace facilitator meeting the $100,000 in sales threshold is required to collect tax on sales of property and services delivered into North Dakota, which are made by a marketplace seller through the marketplace facilitator.

We recommend you reference cited authority for more information.
N.D. Cent. Code §57-39.2-02.2, N.D. Cent. Code §57-40.2-02.3, N.D. Cent. Code §57-39.2-02.3, N.D. Cent. Code §57-40.2-02.4, Remote Seller Sales Tax, North Dakota Office of State Tax Commissioner North Dakota 60-025
Ohio Yes A seller or marketplace facilitator has substantial nexus if, in the current or preceding calendar year, it (i) has gross receipts exceeding $100,000 from sales into Ohio, or (ii) engages in 200 or more separate sales transactions in Ohio.

We recommend you reference cited authority for more information.
Ohio Rev. Code Ann. §5741.01 Ohio 60-025
Oklahoma Yes Remote sellers:
By July 1, 2018, and by June 1 of each calendar year starting in 2019, a “remote seller” who had at least $10,000 ($100,000 effective November 1, 2019) in aggregate Oklahoma sales in the preceding 12-calendar-month period must file an election with the Oklahoma Tax Commission to:
(1) collect and remit sales and use tax due on tangible personal property and obtain a sales tax permit, or
(2) through October 31, 2019, comply with notice and reporting requirements. The notice and reporting option is no longer available to remote sellers effective November 1, 2019.

Marketplace facilitators and referrers:
By July 1, 2018, and by June 1 of each calendar year starting in 2019, a “remote seller,” “marketplace facilitator,” or “referrer” who had at least $10,000 in aggregate Oklahoma sales in the preceding 12-calendar-month period must file an election with the Oklahoma Tax Commission to:
(1) collect and remit sales and use tax due on tangible personal property and obtain a sales tax permit, or
(2) comply with notice and reporting requirements.
Okla. Stat. tit. 68, §1392 Oklahoma 60-445
Pennsylvania Yes Beginning July 1, 2019, persons making more than $100,000 in Pennsylvania sales in the previous 12 months must:
-register for a license; and
-collect, report, and remit sales tax.

Effective through June 30, 2019: By March 1, 2018, and by June 1 of each subsequent calendar year, remote sellers, marketplace facilitators, and referrers with aggregate sales of tangible personal property subject to Pennsylvania sales and use tax of $10,000 or more in the previous 12-calendar-month period must file an election with the Department of Revenue to either:
-collect and remit the sales tax, or
-comply with certain notice and reporting requirements.

We recommend you reference cited authority for more information.
72 P.S. §7213.1(a), 72 P.S. §7201(b)(3.5), Sales and Use Tax Bulletin 2019-01, Uncodified Sec. 33, Act 13 (H.B. 262), Laws 2019 Pennsylvania 60-025
Rhode Island Yes Applies to remote dealers with sales into the state in excess of $100,000 or 200 or more separate transactions. R.I. Gen. Laws §44-18.2-1 et seq. Rhode Island 60-025
South Carolina Yes Economic nexus occurs when gross sales into South Carolina are more than $100,000 in this or the last calendar year. Revenue Ruling 18-14 South Carolina 60-025
South Dakota Yes Effective November 1, 2018, remote retailers are required to collect South Dakota sales tax if they have $100,000 or more in annual sales into South Dakota, or make 200 or more separate annual sales transactions into South Dakota.

We recommend you reference cited authority for more information.
S.D. Codified Laws §10-45-2 South Dakota 60-025
Tennessee Yes Out-of-state dealers with no physical presence in Tennessee who meet the sales threshold in Rule 1320-05-01-.129(2) as of July 31, 2019, must register and begin collecting Tennessee sales and use tax by October 1, 2019.

The following out-of-state dealers with no physical presence in Tennessee have a substantial nexus with Tennessee: (1) those who engage in regular and systematic solicitation of consumers in Tennessee; and (2) make sales exceeding $500,000 to consumers in Tennessee during the previous 12-month period.

We recommend you reference cited authority for more information.
Tenn. Comp. R. & Regs. 1320-5-1-.129(2), Important Notice No. 19-04, Important Notice No. 19-05 Tennessee 60-025
Texas Yes Sales tax collection will be required in Texas if, during the preceeding 12 calendar months, a remote seller exceeds:
(i) $500,000 in total Texas revenue.
The initial 12 calendar months for calculating a remote seller's Texas revenues is July 1, 2018, through June 30, 2019.

We recommend you reference cited authority for more information.
34 Tex. Admin. Code §3.286 Texas 60-025
Utah Yes A sales tax collection obligation is imposed on remote sellers that:
(1) have more than $100,000 in gross revenue in the state or
(2) make at least 200 separate transactions in the state.

We recommend you reference cited authority for more information.
Utah Code Ann. §59-12-107, Utah Code Ann. §59-12-102, Utah Code Ann. §59-12-107.6, Publication 37 Utah 60-025
Vermont Yes A "vendor" having nexus with Vermont includes a person making sales of tangible personal property from outside Vermont to a destination within Vermont and not maintaining a place of business or other physical presence in Vermont who:
—engages in regular, systematic, or seasonal solicitation of sales of tangible personal property in Vermont; and
—has made sales from outside Vermont to destinations within Vermont of at least $100,000 or totaling at least 200 individual sales transactions during any 12-month period preceding the monthly period at issue.
Effective June 1, 2019, the definition of "vendor" is expanded to include certain marketplace facilitators and marketplace sellers.

We recommend you reference cited authority for more information.
Vt. Stat. Ann. tit. 32, §9701(9)(F) and (14), Vt. Stat. Ann. tit. 32, §9713 Vermont 60-025
Virginia Yes Remote sellers are required to register, collect and remit retail sales and use if they have:
(i) more than $100,000 in annual gross revenue from sales in Virginia; or
(ii) at least 200 sales transactions in Virginia.

We recommend you reference cited authority for more information.
Va. Code Ann. §58.1-612 Virginia 60-025
Washington Yes Remote sellers with more than $100,000 in gross retail sales in Washington in the current or prior calendar year, must register and collect sales tax.

We recommend you reference cited authority for more information.
Wash. Rev. Code §82.08.053, MarketPlace Fairness Notice, Wash. Rev. Code §82.08.052 Washington 60-025
West Virginia Yes Effective January 1, 2019, any out-of-state vendor who, as of July 1, 2018, is not required to collect and remit state and municipal sales and use taxes, either because they do not have in-state physical presence or they have not voluntarily agreed to collect and remit the tax, who 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, will be required to collect and remit taxes on all sales made on and after January 1, 2019 that are delivered into West Virginia.
This collection requirement applies to out-of-state vendors that currently do not collect state and municipal sales and use taxes but meet either the $100,000 threshold, or the 200 transactions threshold, during calendar year 2018. Vendor responsibility for collection and remittance of these taxes will be determined annually each year thereafter.

In addition, collection requirements apply to sales by marketplace facilitators or referrers made on and after July 1, 2019.

We recommend you reference cited authority for more information.
W. Va. Code §11-15-3(b), W. Va. Code §11-15A-1, W. Va. Code §11-15A-6b, W. Va. Code R. §110-15-2, Administrative Notice 2018-18 West Virginia 60-025
Wisconsin Yes, beginning October 1, 2018 Beginning October 1, 2018, remote retailers must register and collect Wisconsin sales or use tax if, in the previous or current year, their:
annual gross sales into Wisconsin exceed $100,000; or
annual number of separate sales transactions into Wisconsin is 200 or more.

We recommend you reference cited authority for more information.
Wis. Stat. §77.51(13gm), Wis. Admin. Code §11.97(4) Wisconsin 60-025
Wyoming Yes Remote sellers with over $100,000 in sales to Wyoming or 200 or more transactions in the current or prior calendar year, have nexus.

We recommend you reference cited authority for more information.
Wyo. Stat. Ann. §39-15-501 Wyoming 60-025

SOURCE: Wolters Kluwer, 2020
Permission for use granted.


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