States Respond to SCOTUS Wayfair Decision

May 2019 | 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 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.

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

Webinar
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.

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     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.
California 4/1/2019 $500,000    
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 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.
Georgia (2) 1/1/2020 $100,000 200
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.
Idaho (2) 6/1/2019 $100,000  
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 7/1/2018 $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
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 $100,000 100 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.
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  
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  
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.
South Carolina 11/1/2018 $100,000  
South Dakota 11/1/2018 $100,000 200  
Tennessee 7/1/2019
Texas 10/1/2019 $500,000    
Utah 1/1/2019 $100,000 200  
Vermont 7/1/2018 $100,000 200  
Virginia 7/1/2019 $100,000 200  
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 2/1/2019 $100,000 200  
Find A Location