Insights: Article

States Respond to SCOTUS Wayfair Decision

By David Casper, Laura Robichaud

January 07, 2019

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The recent 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 October 8, 2018. 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 Effective Date Gross Receipts amount # of Transactions Notes
Alabama 10/1/2018 $250,000 Out-of-state seller apply for Simplified Sellers Use Tax (not regular sales tax license).
Alaska     AK does not impose a statewide sales or use tax.
Arizona     AZ has not issued post Wayfair guidance.
Arkansas TDB $100,000 200 AR approved its draft bill for the state legislature.
California 4/1/2019 $100,000 200  
Colorado (1) 7/1/2017 $100,000 Effective 7-1-2017, comply with notice and reporting requirements or register to collect sales tax on sales over $100,000.
Colorado (2) 12/1/2018
** Grace Period through 5/31/2019
$100,000 200 Grace period provided through 5-31-2019, registration for sales tax is mandatory if sales or number of transactions exceed threshold. If a vendor chooses to take advantage of the grace period through 5-31-19, it is still required to comply with the notice and reporting requirements noted above.
Connecticut 12/1/2018 $250,000 200 Both thresholds must be met.
DC  4/1/2019 $100,000 200
Delaware       DE does not impose a statewide sales or use tax.
Florida       FL has not issued post Wayfair guidance.
Georgia 1/1/2019 $250,000 200 Comply with notice and reporting requirements or register to collect sales tax on sales over $250,000 or 200 transactions.
Hawaii 7/1/2018 $100,000 200 Taxpayers that lacked physical presence in Hawaii prior to July 1, 2018, but that met the $100,000 or 200 transaction threshold in 2017 or 2018 will not be required to remit GET for the period from January 1, 2018 - June 30, 2018.
Idaho 7/1/2018 $10,000   Effective 7-1-2018, ID requires out-of-state retailers to collect Idaho sales tax on their sales to Idaho customers when: (1) the out-of-state seller has an agreement with an Idaho retailer to refer potential buyers to the out-ofstate seller for a commission, and (2) the total sales to the Idaho buyers exceeded $10,000 in the previous year.
Illinois 10/1/2018 $100,000 200  
Indiana 10/1/2018 $100,000 200  
Iowa 1/1/2019 $100,000 200  
Kansas KS has not issued post Wayfair guidance.
Kentucky 10/1/2018 $100,000 200  
Louisiana 1/1/2019 $100,000 200 Out-of-state sellers apply for Direct Marketers Sales Tax for statewide rate.
Maine 7/1/2018 $100,000 200 Also, $10,000 threshold for ME referral agreement.
Maryland 10/1/2018 $100,000 200  
Massachusetts 10/01/2017 $500,000 100 Both thresholds must be met
Michigan 10/1/2018 $100,000 200
Minnesota 10/1/2018 $100,000 (reached by 10 more sales) 100  
Mississippi 9/1/2018 $250,000
Missouri     MO has not issued post Wayfair guidance.
Montana     MT does not impose a statewide sales or use tax.
Nebraska 1/1/2019 $100,000 200  
Nevada 10/1/2018 $100,000 200 Regulation approved at 9-13
New Hampshire       NH does not impose a statewide sales or use tax.
New Jersey 11/1/2018 $100,000 200  
New Mexico       NM has not issued post Wayfair guidance.
New York Pre-existing $300,000 100 The Deputy Counsel of the New York State Department refers to longstanding NY tax law that assets nexus is established if property delivered into the state exceeds $300,000 or if more than 100 sales of property were delivered in NY.
North Carolina 11/1/2018 $100,000 200  
North Dakota 10/1/2018 $100,000 200 Begin collecting October 1, 2018, or 60 days after meeting the threshold, whichever is later.
Ohio 1/1/2018 $500,000 Threshold currently applies only to sales of software.
Oklahoma 4/10/2018 $10,000 Comply with notice and reporting requirements or register to collect sales tax on sales over $10,000.
Oregon     OR does not impose a statewide sales or use tax.
Pennsylvania 4/1/2018 $10,000 Comply with notice and reporting requirements or register to collect sales tax on sales over $10,000.
Rhode Island 8/17/2017 $100,000 200 Comply with notice and reporting requirements or register to collect sales tax on sales over $100,000.
South Carolina 11/1/2018 $100,000 SC DOR released revised post-Wayfair guidance on Sept. 18. 
South Dakota 11/1/2018 $100,000 200  
Tennessee 7/1/2017 - on hold $500,000 Enforcement suspended pending resolution of litigation.
Texas  1/1/2019 $500,000   Texas Comptroller of Public Accounts issued a draft to revise its rule restoring sales tax permit and collection requirements that already are in the Texas Tax Code.
Utah 1/1/2019 $100,000 200  
Vermont 7/1/2018 $100,000 200  
Virginia       VA has not issued post Wayfair guidance.
Washington (1) 1/1/2018 $10,000 Effective 1-1-2018 if sales are at $10,000, you must register for sales tax or comply with notice and reporting requirements.
Washington (2) 10/1/2018 $100,000 200 Effective 10-1-2018 if sales are at $100,000, registering to collect and remit sales tax is mandatory.
West Virginia  1/1/2019 $100,000 200
Wisconsin 10/1/2018 $100,000 200
Wyoming TBD $100,000 200 WY is reviewing legislation.

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