States Respond to SCOTUS Wayfair Decision

April 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 April, 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 Out-of-state seller apply for Simplified Sellers Use Tax (not regular sales tax license).
Alaska     Several municipalities impose a sales and use tax.
Arizona $150,000   Threshold will lower $50,000 per year until 2021.
Arkansas $100,000 200 7/1/2019 Only one threshold must be met.
California $500,000   4/1/2019  
Colorado $100,000 6/1/2019 Small businesses do not need to collect and remit tax if they have sales less than 100k in CO, even if they are located in the state.
Connecticut $100,000 200 12/1/2018 Both thresholds must be met. Effective 7/1/2019 threshold is lowered to $100,000.
Delaware        
District of Columbia $100,000 200  4/1/2019
Only one threshold must be met.
Florida        
Georgia $100,000 200 1/1/2019 Only one threshold must be met.
Hawaii $100,000 200 7/1/2018 Only one threshold must be met.
Idaho $100,000   6/1/2019  
Illinois $100,000 200 10/1/2018 Only one threshold must be met.
Indiana $100,000 200 10/1/2018 Only one threshold must be met.
Iowa $100,000   1/1/2019  
Kansas $0 - 10/1/2019 Requires all remote sellers to collect and remit
Kentucky $100,000 200 10/1/2018 Only one threshold must be met.
Louisiana $100,000 200 7/1/2019 Out-of-state sellers apply for Direct Marketers Sales Tax for statewide rate. Only one threshold must be met.
Maine $100,000 200 7/1/2018 Also, $10,000 threshold for ME referral agreements.
Maryland $100,000 200 10/1/2018 Only one threshold must be met.
Massachusetts $100,000   10/1/2017  
Michigan $100,000 200 10/1/2018 Only one threshold must be met.
Minnesota $100,000 200 10/1/2018 Only one threshold must be met.
Mississippi $250,000 9/1/2018
Missouri     Legislation Pending; 100/200
Montana      
Nebraska $100,000 200 1/1/2019 Only one threshold must be met.
Nevada $100,000 200 10/1/2018 Only one threshold must be met.
New Hampshire        
New Jersey $100,000 200 11/1/2018 Only one threshold must be met.
New Mexico $100,000    7/1/2019
New York $500,000 100 6/21/2018 Both thresholds must be met. Effective 6/21/2019 threshold is raised to $500,000.
North Carolina $100,000 200 11/1/2018 Only one threshold must be met.
North Dakota $100,000
10/1/2018  
Ohio $100,000 200 1/1/2018 Only one threshold must be met.
Oklahoma $100,000 6/1/2018  
Oregon      
Pennsylvania $100,000 7/1/2018  
Rhode Island $100,000 200  7/1/2019 Only one threshold must be met.
South Carolina $100,000 11/1/2018  
South Dakota $100,000 200 11/1/2018 Only one threshold must be met.
Tennessee $500,000 10/1/2019
Texas $500,000   10/1/2019  
Utah $100,000 200 1/1/2019 Only one threshold must be met.
Vermont $100,000 200 7/1/2018 Only one threshold must be met.
Virginia $100,000 200 7/1/2019 Only one threshold must be met.
Washington $100,000 1/1/2018  
West Virginia $100,000 200  1/1/2019 Only one threshold must be met.
Wisconsin $100,000 200 10/1/2018 Only one threshold must be met.
Wyoming $100,000 200 2/1/2019 Only one threshold must be met.
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