Remote Seller in U.S.: Economic Nexus

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Remote Seller in U.S.: Economic Nexus

 

Physical presence (employee, warehouse) was previously the only consideration where sales tax nexus is concerned. Over the past several years, many states have enacted economic nexus laws that require remote sellers to collect and remit sales tax if they exceed certain thresholds even if they do not have the physical presence in the state.

 

The below chart provides you a summary of the economic nexus thresholds for some states as of November 10, 2020. For more states data and details, please consult with our consultants.

 

State Nexus Effective Date Remote Seller Threshold
Alabama 10/1/2018 Sales of TPP of more than $250,000 in prior calendar year; No transaction threshold
Arizona 10/1/2019 Annual gross retail sales or income from online sales into Arizona is more than $200,000 in 2019, $150,000 in 2020 and $100,000 in 2021 and thereafter.
California 4/1/2019 The total combined sales exceed $500,000 during the preceding or current calendar year
Colorado 12/1/2018 Taxable sales of more than $100,000 in previous or current calendar year
Connecticut 12/1/2018 Taxable sales of more than $100,000 and 200 transactions 12-month period ending on September 30
Delaware N/A N/A
Georgia 1/1/2019 Effective 1/1/2020: Gross Revenue exceeding $100,000 or 200 or more separate retail sales in the previous or current calendar year.
Illinois 10/1/2018 Either cumulative gross receipts from Illinois sales of $100,000 or more, or 200 or more separate Illinois transactions
Iowa 1/1/2019 Gross revenue from sales of $100,000 in previous or current calendar year
Kentucky 10/1/2018 Gross receipts of $100,000 or more or 200 or more sales based on previous or current calendar year sales
Maryland 10/1/2018 Gross revenue exceeds $100,000 or 200 or more separate transactions during the previous or current calendar year
Massachusetts 10/1/2019 Massachusetts sales exceeding $100,000 during current or previous calendar year
Michigan 10/1/2018 Taxable and non-taxable sales exceeding $100,000 or 200 or more separate transactions in the previous calendar year
Nebraska 1/1/2019 Exceeds $100,000 in Nebraska retail sales or 200 or more separate transactions for delivery into NE in the prior or current calendar year
Nevada 10/1/2018 Gross revenue from retail sales greater than $100,000 or 200 or more retail sales in the prior or current year
New Jersey 11/1/2018 Gross revenue exceeds $100,000 or 200 or more separate transactions in prior or current calendar year
New York 6/21/2018 Gross receipts exceed $500,000 and made more than 100 sales during preceding four sales tax quarters
Ohio 8/1/2019 Gross receipts greater than $100,000 or 200 or more transactions in the current or preceding calendar year.
Pennsylvania 7/1/2019 More than $100,000 in gross sales in the previous twelve months.
Texas 10/1/2019 Total Texas revenue of $500,000 or more in the preceding twelve calendar months
Utah 1/1/2019 Gross revenue of more than $100,000 or more than 200 separate transactions during previous or current calendar year
Washington 10/1/2018 Gross retail sales exceeding $100,000 in preceding or current year
Wyoming 2/1/2019 Gross revenue from sales of TPP, admissions or services of more than $100,000 or 200 or more separate transactions in prior or current year

 

Note:

 

  1. Many states base their threshold on sales OR transactions, while some states base their threshold on sales AND transactions.
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