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 January, 2019. 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.
Join us on September 19 for an update discussing upcoming sales tax trends and steps you can take to ensure your business remains in compliance with sales tax rules.
|Alabama||10/1/2018||$250,000||Out-of-state seller apply for Simplified Sellers Use Tax (not regular sales tax license).|
|Alaska||The State of Alaska does not levy a sales tax; However, several municipalities do have sales tax.|
|Arizona||$200,000 in 2019
$150,000 in 2020
$100,000 in 2021 and thereafter
|Arkansas||TDB||$100,000||200||AR approved its draft bill for the state legislature.|
|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.|
** Grace Period through 5/31/2019
|$100,000||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.|
|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-of-state seller for a commission, and (2) the total sales to the Idaho buyers exceeded $10,000 in the previous year.|
|Kansas||KS has not issued post Wayfair guidance.|
|Louisiana||1/1/2019||$100,000||200||Out-of-state sellers apply for Direct Marketers Sales Tax for statewide rate.|
|Massachusetts||10/01/2017||$500,000||100||Both thresholds must be met|
|Minnesota||10/1/2018||$100,000||100||An exception applies for a retailer making less than$10,000 in sales during the 12 months ending on the last day of the most recent calendar quarter, if the retailer is maintaining a place of business in the state solely because it made sales through one or more marketplace providers.|
|Missouri||MO has not issued post Wayfair guidance.|
|Montana||MT does not impose a statewide sales or use tax.|
|New Hampshire||NH does not impose a statewide sales or use tax.|
|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 Dakota||10/1/2018||$100,000||200||Begin collecting October 1, 2018, or 60 days after meeting the threshold, whichever is later.|
|Oklahoma||7/1/18||$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||7/1/18||$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.|
|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.|