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Wayfair Sales Tax Nexus: Mutiple States Go Live Today

Tax Deadline

Multiple states are initiating their remote sales tax filing requirements today. As a result of the United States Supreme Court’s June 21 decision in South Dakota v. Wayfair, states have been seeking to either craft or revise their present sales tax nexus laws to meet the standards as set forth by the state of South Dakota. The Court’s ruling eliminated the prior physical presence threshold requirements under Quill Corp. v. North Dakota as to when states could tax remote sales

The majority of states are mirroring South Dakota’s economic nexus law, which established as a bright line sales tax nexus on vendors with more than $100,000 in sales or more than 200 transactions a year.

Going forward, as of the publication of this article, additional states are implementing their own Wayfair nexus, due at this time on Nov. 1 (New Jersey, North Carolina, South Carolina, South Dakota; two more on December 1 (Connecticut and Colorado), and additionally on January 1, 2019 (Georgia, Iowa, Louisiana, Nebraska, Utah). Other states are still the process of drafting their legislation (e.g., Arizona and California) , or alternatively have yet to explore their options or release any news as to their treatment of Wayfair (e.g. Kansas and West Virginia).

October 1, 2018 Wayfair Sales Tax Nexus State Threshold

  • Alabama – $250,000 in sales ; note: no transaction threshold
  • Illinois – $100,000 in sales or 200 or more transactions
  • Indiana – $100,000 in sales or 200 or more transactions
  • Kentucky – $100,000 in sales or 200 or more transactions
  • Maryland – $100,000 in sales or 200 or more transactions
  • Michigan – $100,000 in sales or 200 or more transactions
  • Minnesota – $100,000 in 10 transactions or 100 total transactions
  • North Dakota – $100,000 in sales or 200 or more transactions
  • Washington – Either $100,000 in sales or 200 or more transactions; alternatively businesses with sales between $10,000 and $100,000 and less than 200 transactions must comply with Washington’s Notice and Information Reporting requirements
  • Wisconsin – $100,000 in sales or 200 or more transactions

Note the following states already enforcing Wayfair-based economic sales tax nexus, and/or associated sales tax notice and reporting requirements:

  • Hawaii – $100,000 in sales or 200 or more transactions (effective as of 7/1/2018)
  • Maine- $100,000 in sales or 200 or more transactions (effective as of 7/1/2018)
  • Massachusetts – $500,000 and 100 transactions, retroactively applied as of original effective date of 10/1/17
  • Mississippi $250,000 in sales ; note: no transaction threshold (effective as of 9/1/18)
  • Ohio – $500,000 in sales ; note: no transaction threshold (retroactive effective as of 6/30/17)
  • Oklahoma – $10,000 (no transaction threshold) instituting either compliance with notice and information reporting requirements OR collecting and remitting sales tax as of 7/1/18
  • Pennsylvania – $10,000 (no transaction threshold) instituting either compliance with notice and information reporting requirements OR collecting and remitting sales tax as of 3/1/18
  • Rhode Island – $100,000 in sales or 200 or more transactions instituting either compliance with notice and information reporting requirements OR collecting and remitting sales tax (effective as of 6/21/2018)
  • Vermont – $100,000 in sales or 200 or more transactions (effective as of 7/1/2018)

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