States Respond to SCOTUS Wayfair Decision

May 2, 2020 | Article

The US Supreme Court decision that overturned Quill in the South Dakota v Wayfair case has many states making or considering law changes related to sales tax compliance for out-of-state sellers.

The following is a listing of effective dates, gross receipt amounts, number of transactions and notes, generated as of May, 2020. This listing outlines how certain states are reacting to adjust their current rules. The Wayfair decision is an extremely important event, as it opens-up the door for states to collect sales tax from out-of-state sellers where no in-state physical presence is maintained by the seller. 

Out-of-state sellers need to consult with their accountant to determine the best way to handle compliance with the new thresholds and rules being created.

We will continue to monitor the changes that states are making after the Wayfair decision, and will periodically update information related to those changes. Check back regularly for recent developments.

Contact your Eide Bailly professional or a member of our state and local tax team for more information.

State
Revenue Threshold
Transaction Threshold
Effective Date
Notes
Alabama $250,000 10/1/2018 Alabama's economic nexus standard is met when either the revenue threshold or the transactional thresholds are met. 
Alaska     While the state does not impose a sales or use tax, several municipalities do. 
Arizona $150,000 10/1/2019 Arizona has a scaled revenue threshold during a three year period. In 2019, the revenue threshold was $200,000. In 2020, the revenue threshold is $150,000. In 2021, the revenue threshold will lower to $100,000. Taxpayers will be considered to have nexus if the taxpayer has surpassed the revenue threshold in that year and going forward.  
Arkansas $100,000 200 7/1/2019 Arkansas's economic nexus standard is met when either the revenue threshold or the transactional thresholds are met. 
California $500,000   4/1/2019  
Colorado $100,000 6/1/2019 Colorado imposes a small business exception for businesses located in Colorado with revenue under $100,000. These small businesses will be required to collect and submit sales tax at the rate of their business location. 
Connecticut $100,000 200 12/1/2018 Connecticut's economic nexus standard is met when both the revenue threshold and the transactional thresholds are met. 
Delaware       Delaware does not impose a sales or use tax. 
District of Columbia $100,000 200  4/1/2019 The District of Columbia's economic nexus standard is met when either the revenue threshold or the transactional thresholds are met. 
Florida       Florida has not enacted an economic nexus standard. 
Georgia $100,000 200 1/1/2019 Georgia's economic nexus standard is met when either the revenue threshold or the transactional thresholds are met. 
Hawaii $100,000 200 7/1/2018 Hawaii's economic nexus standard is met when either the revenue threshold or the transactional thresholds are met. 
Idaho $100,000   6/1/2019  
Illinois $100,000 200 10/1/2018 Illinois's economic nexus standard is met when either the revenue threshold or the transactional thresholds are met. 
Indiana $100,000 200 10/1/2018 Indiana's economic nexus standard is met when either the revenue threshold or the transactional thresholds are met. 
Iowa $100,000   1/1/2019  
Kansas $0 - 10/1/2019 All remote sellers selling to customers located in Kansas have met the economic nexus standard.
Kentucky $100,000 200 10/1/2018 Kentucky's economic nexus standard is met when either the revenue threshold or the transactional thresholds are met. 
Louisiana $100,000 200 7/1/2019 Louisiana's economic nexus standard is met when either the revenue threshold or the transactional thresholds are met. 
Maine $100,000 200 7/1/2018 Maine's economic nexus standard is met when either the revenue threshold or the transactional thresholds are met. 
Maryland $100,000 200 10/1/2018 Maryland's economic nexus standard is met when either the revenue threshold or the transactional thresholds are met. 
Massachusetts $100,000   10/1/2017 Prior to 10/1/2019, the economic threshold was $500,000 and 100 or more separate transactions. On and after 10/1/2019, the economic threshold decreased to $100,000 and dropped its transactional threshold. 
Michigan $100,000 200 10/1/2018 Michigan's economic nexus standard is met when either the revenue threshold or the transactional thresholds are met. 
Minnesota $100,000 200 10/1/2018 Minnesota's economic nexus standard is met when either the revenue threshold or the transactional thresholds are met. 
Mississippi $250,000 9/1/2018  
Missouri     Missouri has not enacted an economic nexus standard. 
Montana     Montana does not impose a sales or use tax. 
Nebraska $100,000 200 1/1/2019 Nebraska's economic nexus standard is met when either the revenue threshold or the transactional thresholds are met. 
Nevada $100,000 200 10/1/2018 Nevada's economic nexus standard is met when either the revenue threshold or the transactional thresholds are met. 
New Hampshire       New Hampshire does not impose a sales or use tax. 
New Jersey $100,000 200 11/1/2018 New Jersey's economic nexus standard is met when either the revenue threshold or the transactional thresholds are met. 
New Mexico $100,000    7/1/2019  
New York $500,000 100 6/21/2018 New York's economic nexus standard is met when both the revenue threshold and the transactional thresholds are met. 
North Carolina $100,000 200 11/1/2018 North Carolina's economic nexus standard is met when either the revenue threshold or the transactional thresholds are met. 
North Dakota $100,000
10/1/2018  
Ohio $100,000 200 1/1/2018 Ohio's economic nexus standard is met when either the revenue threshold or the transactional thresholds are met. Prior to 8/1/2019, the economic threshold was $500,000. However, it decreesed to $100,000 on and after 8/1/2019.
Oklahoma $100,000 6/1/2018  
Oregon     Oregon does not impose a sales or use tax. 
Pennsylvania $100,000 7/1/2018  
Rhode Island $100,000 200  7/1/2019 Rhode Island's economic nexus standard is met when either the revenue threshold or the transactional thresholds are met. 
South Carolina $100,000 11/1/2018  
South Dakota $100,000 200 11/1/2018 South Dakota's economic nexus standard is met when either the revenue threshold or the transactional thresholds are met.  
Tennessee $100,000 10/1/2020 Previously $500,000 effective 10/1/2019 through 9/30/2020.
Texas $500,000   10/1/2019  
Utah $100,000 200 1/1/2019 Utah's economic nexus standard is met when either the revenue threshold or the transactional thresholds are met. 
Vermont $100,000 200 7/1/2018 Vermont's economic nexus standard is met when either the revenue threshold or the transactional thresholds are met. 
Virginia $100,000 200 7/1/2019 Virginia's economic nexus standard is met when either the revenue threshold or the transactional thresholds are met. 
Washington $100,000 1/1/2018  
West Virginia $100,000 200  1/1/2019 West Virginia's economic nexus standard is met when either the revenue threshold or the transactional thresholds are met. 
Wisconsin $100,000 200 10/1/2018 Wisconsin's economic nexus standard is met when either the revenue threshold or the transactional thresholds are met. 
Wyoming $100,000 200 2/1/2019 Wyoming's economic nexus standard is met when either the revenue threshold or the transactional thresholds are met. 
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