When reviewing the new sales tax economic nexus chart to determine the impact on your company, comparing your company’s sales-by-state to the threshold on the chart is just the beginning. The key is to comply without creating unintended consequences. Your company must take the proper steps to address the domino effect of issues created by the new sale tax nexus landscape before your company registers and starts collecting sales tax in new states.
| State | Sales Tax Economic Nexus Threshold (Based on Previous 12-months or Calendar Year) |
Enforcement Date |
| Alabama | $250,000 in sales | 10/1/2018 |
| Alaska | No Sales Tax | N/A |
| Arizona | No threshold yet | |
| Arkansas | in-process (considering $100,000 or 200 transactions) | |
| California | $100,000 in sales or 200 transactions | 4/1/2019 |
| Colorado | $100,000 in sales or 200 transactions | 12/1/2018 (grace period until 5/31/19) |
| Connecticut | $250,000 in sales AND 200 transactions | 12/1/2018 |
| D.C. | $100,000 in sales or 200 transactions | 1/1/2019 |
| Delaware | No Sales Tax | N/A |
| Florida | No threshold yet | |
| Georgia | $250,000 in sales or 200 transactions | 1/1/2019 |
| Hawaii | $100,000 in sales or 200 transactions | 7/1/2018 |
| Idaho | No threshold yet | |
| Illinois | $100,000 in sales or 200 transactions | 10/1/2018 |
| Indiana | $100,000 in sales or 200 transactions | 10/1/2018 |
| Iowa | $100,000 in sales or 200 transactions | 1/1/2019 |
| Kansas | No threshold yet | |
| Kentucky | $100,000 in sales or 200 transactions | 10/1/2018 |
| Louisiana | $100,000 in sales or 200 transactions | 1/1/2019 |
| Maine | $100,000 in sales or 200 transactions | 7/1/2018 |
| Maryland | $100,000 in sales or 200 transactions | 10/1/2018 |
| Massachusetts | $500,000 in sales AND 100 transactions (only applies to remote internet sellers that establish physical nexus by placing in-state software (“apps”) and ancillary data (“cookies”) on in-state devices) | 10/1/2017 |
| Michigan | $100,000 in sales or 200 transactions | 10/1/2018 |
| Minnesota | $100,000 in sales in at least 10 transactions or 100 transactions | 10/1/2018 |
| Mississippi | $250,000 in sales | 9/1/2018 |
| Missouri | No threshold yet | |
| Montana | No Sales Tax | N/A |
| Nebraska | $100,000 in sales or 200 transactions | 1/1/2019 |
| Nevada | $100,000 in sales or 200 transactions | 10/1/2018 |
| New Hampshire | No Sales Tax | N/A |
| New Jersey | $100,000 in sales or 200 transactions | 11/1/2018 |
| New Mexico | No threshold yet | |
| New York | $300,000 in sales AND 100 transactions | 6/21/2018 |
| North Carolina | $100,000 in sales or 200 transactions | 11/1/2018 |
| North Dakota | $100,000 in sales or 200 transactions | 10/1/2018 |
| Ohio | $500,000 in sales (only applies to seller using in-state software to sell or lease tangible property; or to remote sellers that provide or have an agreement with another person to provide a content distribution network in Ohio to accelerate or enhance delivery of the seller’s website to customers in the state) | 1/1/2018 |
| Oklahoma | $10,000 in sales (remote sellers can choose to collect and remit sales taxes or comply with notice and reporting requirements) | 7/1/2018 |
| Oregon | No Sales Tax | N/A |
| Pennsylvania | For retailers with < $100,000 in PA sales the threshold is $10,000 in sales (remote sellers can choose to collect and remit sales taxes or comply with notice and reporting requirements | 4/1/2018 |
| For retailers with > $100,000 in PA sales, must collect sales tax | 7/1/2019 | |
| Rhode Island | $100,000 in sales or 200 transactions (remote sellers can choose to collect and remit sales taxes or comply with notice and reporting requirements) | 8/17/2017 |
| South Carolina | $100,000 in sales | 11/1/2018 |
| South Dakota | $100,000 in sales or 200 transactions | 11/1/2018 |
| Tennessee | $500,000 in sales | on-hold due to litigation |
| Texas | $500,000 in sales | 10/1/2019 |
| Utah | $100,000 in sales or 200 transactions | 1/1/2019 |
| Vermont | $100,000 in sales or 200 transactions | 7/1/2018 |
| Virginia | No threshold yet | |
| Washington | $100,000 in sales or 200 transactions | 10/1/2018 |
| West Virginia | $100,000 in sales or 200 transactions | 1/1/2019 |
| Wisconsin | $100,000 in sales or 200 transactions | 10/1/2018 |
| Wyoming | $100,000 in sales or 200 transactions | 2/1/2019 |
Contact your LBMC client service partner to determine the impact on your company, use our contact form and someone will contact you shortly.
LBMC tax tips are provided as an informational and educational service for clients and friends of the firm. The communication is high-level and should not be considered as legal or tax advice to take any specific action. Individuals should consult with their personal tax or legal advisors before making any tax or legal-related decisions. In addition, the information and data presented are based on sources believed to be reliable, but we do not guarantee their accuracy or completeness. The information is current as of the date indicated and is subject to change without notice.