Sales Tax Nexus: What Startup Founders Need To Know About Each State's Rules

Beth Zhaoby Beth Zhao • 30 min readpublished August 15, 2022 updated August 18, 2022
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Most of us know what sales tax is, and unless you’re from one of the handful of states without sales tax you’ve almost certainly paid sales tax before. Sales tax rates range between 0% and about 10%, with some municipalities tacking on nominal local taxes of their own.

Simple enough, right? For individuals, yes. For retailers… not so fast: there is a lot of confusion over when a company is liable for paying sales tax to a state.

Generally speaking, your company needs to remit sales tax to a state (usually its Department of Revenue) when you have presence, or nexus, with that state. In the tax rules, this is referred to as the “sales tax nexus.” However, what types and levels of commercial activity trigger sales tax nexus?

The History of Sales Tax Nexus

Traditionally, you create a sales tax nexus when you are physically present in the state. This is typically referred to as “physical presence” or “physical nexus”. There is physical presence in the state if you have a store or sales representatives in the state. If you have a warehouse in the state but no physical storefronts, you likely have a sales tax nexus with the state through physical presence. In some states, if you sell physical products into the state, that may create a physical nexus for sales tax purposes.

The issue with physical nexus is that it does not capture the ever-increasing e-commerce sales, which are typically conducted by out-of-state businesses. This means that under the traditional standard, marketplace facilitators such as Amazon and eBay can dodge its sales tax collection and sales tax compliance responsibilities despite making millions of dollars of sales into the state. To solve this problem, the Supreme Court created a new sales tax nexus standard called “economic nexus” (sometimes also called “economic presence”).

Your company may have an economic nexus and is responsible for paying sales tax when it surpasses a certain level of business activity into the state, whether it’s a dollar amount or a certain number of transactions. These thresholds differ from state to state. However, most states use $100,000 or more in sales to the state or 200 or more online sales or in-person transactions within one calendar year as the sales threshold for economic nexus. (Continue reading for a state-by-state guide to economic nexus laws.)

Although the economic nexus was established in 2018 following the South Dakota v. Wayfair decision handed down by the U.S. Supreme Court, many states have also created laws prior to 2018 to capture e-commerce sales for sales tax purposes. These state tax laws typically came in the form of click-through nexus and affiliate nexus. Click-through nexus is essentially the same as economic nexus, except the amount of sales which trigger this status is much lower than economic nexus thresholds and affects more small businesses. Affiliate nexus happens when the seller has in-state representatives, employees, affiliates, or other entities in the state.

While click-through nexus and affiliate nexus were created earlier, economic nexus is the controlling nexus, other than physical nexus, when determining whether an out-of-state seller is responsible for remitting sales tax. This is because the Supreme Court made a ruling on the legality of economic nexus and click-through and affiliate nexus derive any relevant legality from economic nexus.

Sales Tax vs. Use Tax

You may have heard the terms sales tax and use tax used interchangeably and that’s largely because the terms mean the same thing. Sales tax refers to out-of-state sellers who would create a nexus with the state through physical presence whereas use tax refers to remote sellers who are responsible for remitting sales tax based on economic nexus.

State By State Summary Of Economic Nexus Rules

Alabama

Summary: You are responsible for paying sales tax to Alabama if you make $250,000 or more in sales into the state. The threshold includes transactions from total retail sales of tangible personal property delivered into the state, sales made through a non-collecting marketplace, and exempt sales. Exempt sales refer to businesses in the state, making the purchase, that are exempt from paying sales tax. Transactions that do not count toward the threshold include sales made through a registered marketplace facilitator, exempt wholesale sales, exempt services.

The Alabama Department of Revenue provides the following information on the state’s economic nexus.

You can register to pay sales tax through Alabama’s online portal.

Evaluation period: Current or previous calendar year.

Effective date: October 1, 2018

Alaska

Summary: You are responsible for paying sales tax to Alaska if you make $100,000 or more in sales or 200 transactions into the state. The threshold includes transactions from statewide gross sales of goods, property or products delivered into the state, services rendered in the state, sales through marketplaces, exempt sales, exempt services.

Unlike most other states, the state of Alaska does not levy a statewide sales tax. However, many municipalities in the state levy a sales tax and use the economic nexus standard. You will need to contact local governments for more information regarding economic nexus and registering to pay sales tax.

Evaluation period: Current or previous calendar year

Effective date: varies by municipality

Arizona

Summary: You are responsible for paying sales tax to Arizona if you make $100,000 or more in sales into the state. The threshold includes transactions from gross proceeds of sales of tangible personal property or services, gross income derived from business in the state, services rendered in the state, exempt sales, exempt services. Transactions that do not count toward the threshold include sales through marketplaces.

The Arizona Department of Revenue provides the following information on the state’s economic nexus.

You can register to pay sales tax through Arizona’s online portal.

Evaluation period: Current or previous calendar year

Effective date: October 1, 2019

Arkansas

Summary: You are responsible for paying sales tax to Arkansas if you make $100,000 or more in sales or 200 transactions into the state. The threshold includes transactions from aggregated sales of taxable tangible personal property or services, taxable services, digital codes, specified digital products subject to Arkansas sales or use tax delivered into a state. Transactions that do not count toward the threshold include sales and services that are not normally subject to sales tax in the state and sales made through a registered marketplace.

The Arkansas Department of Finance and Administration provides the following information on the state’s economic nexus.

You can register to pay sales tax through Arkansas’ online portal.

Evaluation period: Current or previous calendar year

Effective date: July 1, 2019

California

Summary: You are responsible for paying sales tax to California if you make $500,000 or more in sales into the state. The threshold includes the total combined sales of tangible personal property delivered into the state by the retailer and all persons related to the retailer and other nontaxable sales. Transactions that do not count toward the threshold include services and exempt services.

The California Department of Tax and Fee Administration provides the following information on the state’s economic nexus.

You can register to pay sales tax through California’s online portal.

Evaluation period: Current or previous calendar year

Effective date: April 1, 2019

Colorado

Summary: You are responsible for paying sales tax to Colorado if you make $100,00 or more in sales into the state. The threshold includes transactions from retail sales of tangible personal property delivered into the state, commodities delivered into the state, services delivered into the state, exempt sales, exempt services. Transactions that do not count toward the threshold include exempt wholesale.

The Colorado Department of Revenue provides the following information on the state’s economic nexus.

You can register to pay sales tax through Colorado’s online portal.

Evaluation period: Current or previous calendar year

Effective date: December 1, 2018

Connecticut

Summary: You are responsible for paying sales tax to Connecticut if you make $100,000 or more in sales or 200 transactions into the state. The threshold includes transactions from gross receipts from tangible personal property (including digital products and SaaS) sold into the state, exempt sales in sales only, exempt services in sales only. Transactions that do not count toward the threshold include services, sales for resale, sales through an online marketplace.

The Connecticut Department of Revenue Services provides the following information on the state’s economic nexus.

You can register to pay sales tax through Connecticut’s online portal.

Evaluation period: 12-month period ending on September 30 immediately preceding the monthly or quarterly period when liability is established.

Effective date: July 1, 2019

Delaware

Delaware does not have state or local sales tax.

Florida

Summary: You are responsible for paying sales tax to Florida if you make $100,00 or more in sales into the state. The threshold includes transactions from taxable sales of tangible personal property delivered physically into the state. Transactions that do not count toward the threshold include exempt sales, exempt services, taxable services.

The Florida Department of Revenue provides the following information on the state’s economic nexus.

You can register to pay sales tax through Florida’s online portal.

Evaluation period: Current or previous calendar year

Effective date: July 1, 2021

Georgia

Summary: You are responsible for paying sales tax to Georgia if you make $100,000 or more in sales or 200 transactions into the state. The threshold includes transactions from gross revenue from retail sales of tangible personal property delivered electronically or physically to a location in the state for consumption, use, or storage in the state, and exempt sales. Transactions that do not count toward the threshold include taxable services, exempt services, exempt resales.

The Georgia Department of Revenue provides the following information on the state’s economic nexus.

You can register to pay sales tax through Georgia’s online portal.

Evaluation period: Current or previous calendar year

Effective date: January 1, 2019

Hawaii

Summary: You are responsible for paying sales tax to Hawaii if you make $100,000 or more in sales or 200 transactions into the state. The threshold includes transactions from gross income or gross proceeds of tangible personal property delivered in the state, intangible property delivered in the state, services delivered or consumed in the state, exempt sales, exempt services. There are no excluded transactions in Hawaii.

The Hawaii Department of Taxation provides the following information on the state’s economic nexus.

You can register to pay sales tax through Hawaii’s online portal.

Evaluation period: Current or previous calendar year

Effective date: January 1, 2018

Idaho

Summary: You are responsible for paying sales tax to Idaho if you make $100,000 or more in sales into the state. The threshold includes transactions from cumulative gross receipts from sales including taxable products and taxable services delivered into the state, exempt sales, exempt services. There are no excluded transactions in Idaho.

The Idaho State Tax Commission provides the following information on the state’s economic nexus.

You can register to pay sales tax through Idaho’s online portal.

Evaluation period: Current or previous calendar year

Effective date: June 1, 2019

Illinois

Summary: You are responsible for paying sales tax to Illinois if you make $100,000 or more in sales or 200 transactions into the state. The threshold includes transactions from cumulative gross receipts from sales, exempt sales. Transactions that do not count toward the threshold include occasional sales, sales for resale, services, sales made through a marketplace facilitator.

The Illinois Department of Revenue provides the following information on the state’s economic nexus.

You can register to pay sales tax through Illinois’s online portal.

Evaluation period: Quarterly review based on preceding 12-month period

Effective date: October 1, 2018

Indiana

Summary: You are responsible for paying sales tax to Indiana if you make $100,000 or more in sales or 200 transactions into the state. The threshold includes transactions from gross revenue from sales of tangible personal property, electronically delivered products into the state, electronically delivered services into the state, exempt sales, exempt services. There are no excluded transactions in Indiana.

The Indiana Department of Revenue provides the following information on the state’s economic nexus.

You can register to pay sales tax through Indiana's online portal.

Evaluation period: Current or previous calendar year

Effective date: October 1, 2018

Iowa

Summary: You are responsible for paying sales tax to Iowa if you make $100,00 or more in sales into the state. The threshold includes transactions from gross revenue from sales of tangible personal property, specified electronically delivered products, electronically delivered services into the state, exempt sales, exempt services. There are no excluded transactions in Iowa.

The Iowa Department of Revenue provides the following information on the state’s economic nexus.

You can register to pay sales tax through Iowa’s online portal.

Evaluation period: Current or previous calendar year

Effective date: January 1, 2019

Kansas

Summary: You are responsible for paying sales tax to Kansas if you make $100,00 or more in sales into the state. The threshold includes transactions from cumulative gross receipt from sales by the retailer to customers in Kansas, exempt sales, exempt services, digital products and SaaS. There are no excluded transactions in Kansas.

The Kansas Department of Revenue provides the following information on the state’s economic nexus.

You can register to pay sales tax through Kansas’s online portal.

Evaluation period: Current or previous calendar year

Effective date: July 1, 2021

Kentucky

Summary: You are responsible for paying sales tax to Kentucky if you make $100,000 or more in sales or 200 transactions into the state. The threshold includes transactions from gross receipts from sales of tangible personal property delivered or transferred electronically into the commonwealth, digital property delivered or transferred electronically into the commonwealth, exempt sales. Transactions that do not count toward the threshold include exempt services, taxable services.

The Ketucky Department of Revenue provides the following information on the state’s economic nexus.

You can register to pay sales tax through Kentucky’s online portal.

Evaluation period: Current or previous calendar year

Effective date: October 1, 2018

Louisiana

Summary: You are responsible for paying sales tax to Louisiana if you make $100,000 or more in sales or 200 transactions into the state. The threshold includes transactions from gross revenue from sales of products delivered into the state, electronically transferred products, services delivered into the state, exempt sales, exempt services. There are no excluded transactions in Louisiana.

The Louisiana Department of Revenue provides the following information on the state’s economic nexus.

You can register to pay sales tax through Louisiana’s online portal.

Evaluation period: Current or previous calendar year

Effective date: July 1, 2020

Maine

Summary: You are responsible for paying sales tax to Maine if you make $100,00 or more in sales into the state. The threshold includes transactions from gross sales of tangible personal property delivered into the state, taxable services delivered into the state, exempt sales. Transactions that do not count toward the threshold include exempt services.

The Maine Department of Administrative and Financial Services provides the following information on the state’s economic nexus.

You can register to pay sales tax through Maine’s online portal.

Evaluation period: Current or previous calendar year

Effective date: July 1, 2018

Maryland

Summary: You are responsible for paying sales tax to Maryland if you make $100,000 or more in sales or 200 transactions into the state. The threshold includes transactions from gross revenue from sales of tangible personal property delivered into the state, sales of software delivered into the state, digital goods delivered into the state, exempt sales of tangible personal property, exempt sales of software, exempt sales of digital goods. Transactions that do not count toward the threshold include exempt services.

The Comptroller of Maryland provides the following information on the state’s economic nexus.

You can register to pay sales tax through Maryland’s online portal.

Evaluation period: Current or previous calendar year

Effective date: October 1, 2018

Massachusetts

Summary: You are responsible for paying sales tax to Massachusetts if you make $100,000 or more in sales into the state. The threshold includes transactions from sales of tangible personal property delivered into the commonwealth, services delivered into the state, exempt sales, exempt services. There are no excluded transactions in Massachusetts.

The Massachusetts Department of Revenue provides the following information on the state’s economic nexus.

You can register to pay sales tax through Massachusetts’s online portal.

Evaluation period: Current or previous calendar year

Effective date: October 1, 2019

Michigan

Summary: You are responsible for paying sales tax to Michigan if you make $100,000 or more in sales or 200 transactions into the state. The threshold includes transactions from sales of tangible personal property delivered into the state, taxable services delivered into the state, exempt sales, exempt services. There are no excluded transactions in Michigan.

The Michigan Department of Treasury provides the following information on the state’s economic nexus.

You can register to pay sales tax through Michigan’s online portal.

Evaluation period: Current or previous calendar year

Effective date: September 30, 2018

Minnesota

Summary: You are responsible for paying sales tax to Minnesota if you make $100,000 or more in sales or 200 transactions into the state. The threshold includes transactions from retail sales made into the state from outside the state, taxable services, exempt sales, sales to tax-exempt entities. Transactions that do not count toward the threshold include sales for resale, exempt services, taxable resale.

The Minnesota Department of Revenue provides the following information on the state’s economic nexus.

You can register to pay sales tax through Minnesota’s online portal.

Evaluation period: The previous 12-month period

Effective date: October 1, 2019

Mississippi

Summary: You are responsible for paying sales tax to Mississippi if you make $250,000 or more in sales into the state. The threshold includes transactions from total sales made into the state by remote sellers that purposefully or systematically exploit the market in the state, services, exempt sales, exempt services. There are no excluded transactions in Mississippi.

The Mississippi Department of Revenue provides the following information on the state’s economic nexus.

You can register to pay sales tax through Mississippi’s online portal.

Evaluation period: The previous 12-month period

Effective date: September 1, 2018

Missouri

Summary: You are responsible for paying sales tax to Missouri if you make $100,00 or more in sales into the state. The threshold includes transactions from gross receipts from taxable sales of tangible personal property delivered into the state. Transactions that do not count toward the threshold include exempt sales.

Since Missouri will not be imposing an economic nexus until 2023, the state’s Department of Revenue does not have any information regarding the topic as of August 2022.

You can register to pay sales tax through Missouri’s online portal.

Evaluation period: Current or previous calendar year

Effective date: January 1, 2023

Montana

Montana does not have state or local sales tax.

Nebraska

Summary: You are responsible for paying sales tax to Nebraska if you make $100,000 or more in sales or 200 transactions into the state. The threshold includes transactions from total retail sales made to customers in the state, exempt sales, exempt services, sales for resale, sublease, or subrent. There are no excluded transactions in Nebraska.

The Nebraska Department of Revenue provides the following information on the state’s economic nexus.

You can register to pay sales tax through Nebraska’s online portal.

Evaluation period: Current or previous calendar year

Effective date: April 1, 2019

Nevada

Summary: You are responsible for paying sales tax to Nevada if you make $100,000 or more in sales or 200 transactions into the state. The threshold includes transactions from gross revenue from retail sales of tangible personal property into the state, exempt sales. Transactions that do not count toward the threshold include sales for resale, exempt services, services.

The Nevada Department of Taxation provides the following information on the state’s economic nexus.

You can register to pay sales tax through Nevada online portal.

Evaluation period: Current or previous calendar year

Effective date: October 1, 2018

New Hampshire

New Hampshire does not have state or local sales tax.

New Jersey

Summary: You are responsible for paying sales tax to New Jersey if you make $100,000 or more in sales or 200 transactions into the state. The threshold includes transactions from gross revenue from retail sales of tangible personal property into the state, specified digital products, taxable services (listed in N.J.S.A. 54:32B-3(b)) delivered into the state, nontaxable retail sales of tangible personal property, receipts for taxable services (listed in N.J.S.A. 54:32B-3(b)) delivered into the state, even if it’s exempt. There are no excluded transactions in New Jersey.

The New Jersey Department of Treasury provides the following information on the state’s economic nexus.

You can register to pay sales tax through New Jersey’s online portal.

Evaluation period: Current or previous calendar year

Effective date: November 1, 2018

New Mexico

New Mexico does not have state or local sales tax.

New York

Summary: You are responsible for paying sales tax to New York if you make $500,000 or more in sales or 100 transactions into the state. The threshold includes transactions from cumulative total gross receipts from sales of tangible personal property delivered into the state, software as a service (SaaS) counts as tangible personal property, and nontaxable retail sales of tangible personal property. Transactions that do not count toward the threshold include services.

The New York Department of Taxation and Finance provides the following information on the state’s economic nexus.

You can register to pay sales tax through New York’s online portal.

Evaluation period: Immediately preceding four sales tax quarters

Effective date: June 21, 2018

North Carolina

Summary: You are responsible for paying sales tax to North Carolina if you make $100,000 or more in sales or 200 transactions into the state. The threshold includes transactions from gross sales sourced to the state, sum total sales price of tangible personal property, sum total sales price of digital property, sum total sales price of services, exempt sales, exempt services. There are no excluded transactions in North Carolina.

The North Carolina Department of Revenue provides the following information on the state’s economic nexus.

You can register to pay sales tax through North Carolina's online portal.

Evaluation period: Current or previous calendar year

Effective date: November 1, 2018

North Dakota

Summary: You are responsible for paying sales tax to North Dakota if you make $100,00 or more in sales into the state. The threshold includes transactions from gross taxable sales of tangible personal property and other items into the state, gross taxable sales of services into the state. Transactions that do not count toward the threshold include exempt sales, exempt services, sales made through a marketplace.

The North Dakota Office of State Tax Commissioner provides the following information on the state’s economic nexus.

You can register to pay sales tax through North Dakota’s online portal.

Evaluation period: Current or previous calendar year

Effective date: October 1, 2018

Ohio

Summary: You are responsible for paying sales tax to Ohio if you make $100,000 or more in sales or 200 transactions into the state. The threshold includes transactions from gross receipts from sales of tangible personal property for storage, use, or consumption in the state, enumerated services, the benefit of which is realized in the state, exempt sales. There are no excluded transactions in Ohio.

The Ohio Department of Taxation provides the following information on the state’s economic nexus.

You can register to pay sales tax through Ohio’s online portal.

Evaluation period: Current or previous calendar year

Effective date: August 1, 2019

Oklahoma

Summary: You are responsible for paying sales tax to Oklahoma if you make $100,00 or more in sales into the state. The threshold includes transactions from aggregate sales of taxable tangible personal property. Transactions that do not count toward the threshold include exempt sales, exempt services, services.

The Oklahoma Tax Commission provides the following information on the state’s economic nexus.

You can register to pay sales tax through Oklahoma’s online portal.

Evaluation period: Current or previous calendar year

Effective date: August 1, 2019

Oregon

Oregon does not have state or local sales tax.

Pennsylvania

Summary: You are responsible for paying sales tax to Pennsylvania if you make $100,00 or more in sales into the state. The threshold includes transactions from gross sales of products and services in the commonwealth, sales by agents, representatives, or subsidiaries in the commonwealth, exempt sales, and exempt services. There are no excluded transactions in Pennsylvania.

The Pennsylvania Department of Revenue provides the following information on the state’s economic nexus.

You can register to pay sales tax through Pennsylvania’s online portal.

Evaluation period: Current or previous calendar year

Effective date: July 1, 2019

Rhode Island

Summary: You are responsible for paying sales tax to Rhode Island if you make $100,000 or more in sales or 200 transactions into the state. The threshold includes transactions from gross revenue from sales of tangible personal property, prewritten computer software delivered electronically, load and leave, vendor-hosted prewritten computer software, specified digital products, taxable services delivered into the state, exempt sales. Transactions that do not count toward the threshold include exempt services.

The Rhode Island Department of Revenue provides the following information on the state’s economic nexus.

You can register to pay sales tax through Rhode Island’s online portal.

Evaluation period: Previous calendar year

Effective date: July 1, 2019

South Carolina

Summary: You are responsible for paying sales tax to South Carolina if you make $100,00 or more in sales into the state. The threshold includes transactions from gross revenue from sales of tangible personal property, electronically transferred products, services delivered into the state, exempt sales, exempt services. There are no excluded transactions in South Carolina.

The South Carolina Department of Revenue provides the following information on the state’s economic nexus.

You can register to pay sales tax through South Carolina’s online portal.

Evaluation period: Current or previous calendar year

Effective date: November 1, 2018

South Dakota

Summary: You are responsible for paying sales tax to South Dakota if you make $100,000 or more in sales or 200 transactions into the state. The threshold includes transactions from gross revenue from sales of tangible personal property, electronically transferred products, services delivered into the state, exempt sales, exempt services. There are no excluded transactions in South Dakota.

The South Dakota Department of Revenue provides the following information on the state’s economic nexus.

You can register to pay sales tax through South Dakota’s online portal.

Evaluation period: Previous calendar year

Effective date: November 1, 2018

Tennessee

Summary: You are responsible for paying sales tax to Tennessee if you make $100,00 or more in sales into the state. The threshold includes transactions from gross revenue from sales to customers in the state, exempt sales, exempt services. Transactions that do not count toward the threshold include sales made through online marketplaces, sales for resale.

The Tennessee Department of Revenue provides the following information on the state’s economic nexus.

You can register to pay sales tax through Tennessee’s online portal.

Evaluation period: Previous 12-month period

Effective date: July 1, 2019

Texas

Summary: You are responsible for paying sales tax to Texas if you make $500,000 or more in sales into the state. The threshold includes transactions from gross revenue from sales of tangible personal property and services into the state, exempt sales, exempt services. There are no excluded transactions in Texas.

The Texas Comptroller of Public Accounts provides the following information on the state’s economic nexus.

You can register to pay sales tax through Texas’ online portal.

Evaluation period: Previous 12-month period

Effective date: July 1, 2019

Utah

Summary: You are responsible for paying sales tax to Utah if you make $100,000 or more in sales or 200 transactions into the state. The threshold includes transactions from gross revenue from sales of tangible personal property and services into the state, any product transferred electronically into the state, services delivered into the state, exempt sales, exempt services. There are no excluded transactions in Utah.

The Utah State Tax Commission provides the following information on the state’s economic nexus.

You can register to pay sales tax through Utah’s online portal.

Evaluation period: Current or previous calendar year

Effective date: January 1, 2019

Vermont

Summary: You are responsible for paying sales tax to Vermont if you make $100,000 or more in sales or 200 transactions into the state. The threshold includes transactions from sales of tangible personal property and services into the state, products transferred electronically, services in the state, exempt sales, exempt services. There are no excluded transactions in Vermont.

The Vermont Department of Taxes provides the following information on the state’s economic nexus.

You can register to pay sales tax through Vermont’s online portal.

Evaluation period: Previous 12-month period

Effective date: July 1, 2018

Virginia

Summary: You are responsible for paying sales tax to Virginia if you make $100,000 or more in sales or 200 transactions into the state. The threshold includes transactions from sales of tangible personal property, products transferred electronically, services, exempt sales. Transactions that do not count toward the threshold include sales for resale, exempt services.

The Virginia Department of Taxation provides the following information on the state’s economic nexus.

You can register to pay sales tax through Virginia's online portal.

Evaluation period: Current or previous calendar year

Effective date: July 1, 2019

Washington State

Summary: You are responsible for paying sales tax to Washington state if you make $100,00 or more in sales into the state. The threshold includes transactions from cumulative gross annual income, exempt sales, exempt services, sales for resale. There are no excluded transactions in the state.

The Washington Department of Revenue provides the following information on the state’s economic nexus.

You can register to pay sales tax through Washington’s online portal.

Evaluation period: Current or previous calendar year

Effective date: October 1, 2018

Washington, D.C

Summary: You are responsible for paying sales tax to the District of Columbia if you make $100,000 or more in sales or 200 transactions into the district. The threshold includes transactions from gross receipts from all retail sales delivered into the District, exempt sales. Transactions that do not count toward the threshold include sales for resale.

The D.C. Office of Tax and Revenue provides the following information on the district's economic nexus.

You can register to pay sales tax through Washington, D.C.’s online portal.

Evaluation period: Current or previous calendar year

Effective date: January 1, 2019

West Virginia

Summary: You are responsible for paying sales tax to West Virginia if you make $100,000 or more in sales or 200 transactions into the state. The threshold includes transactions from gross sales of tangible personal property and services into the state, exempt sales, exempt services. There are no excluded transactions in West Virginia

The West Virginia Tax Department provides the following information on the state’s economic nexus.

You can register to pay sales tax through West Virginia’s online portal.

Evaluation period: Current or previous calendar year

Effective date: January 1, 2019

Wisconsin

Summary: You are responsible for paying sales tax to Wisconsin if you make $100,00 or more in sales into the state. The threshold includes transactions from annual gross sales of tangible personal property into the state, annual gross sales of services into the state, exempt sales, exempt services. There are no excluded transactions in Wisconsin.

The Wisconsin Department of Revenue provides the following information on the state’s economic nexus.

You can register to pay sales tax through Wisconsin’s online portal.

Evaluation period: Current or previous calendar year

Effective date: October 1, 2018

Wyoming

Summary: You are responsible for paying sales tax to Wyoming if you make $100,000 or more in sales or 200 transactions into the state. The threshold includes transactions from annual gross sales of tangible personal property into the state, annual gross sales of services into the state, annual gross sales of admission into the state, taxable, exempt, and wholesale sales, exempt sales, exempt services. There are no excluded transactions in Wyoming.

Wyoming statute provides the following information regarding economic nexus in the state.

You can register to pay sales tax through Wyoming’s online portal.

Evaluation period: Current or previous calendar year

Effective date: February 1, 2019

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Beth Zhao

Beth is a second year law student at The George Washington Law School. She is a member of the Public Contract Law Journal.

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