Online Tax Laws By State - Supreme Court Ruling

On June 21, 2018, the United States Supreme Court issued a new ruling for the collection of online sales taxes in the case of South Dakota vs. Wayfair. This decision requires out-of-state sellers to pay sales tax if a seller reaches certain revenue thresholds. You can find updated information for your exact state below.

This information is based on data found on Jan. 8 2018. Information will be updated as it becomes available however it is the Seller's responsibility to be compliant. 

Generally this should not affect your method for collecting sales tax unless you sell more than 200 transactions or $100,000 in online sales to each individual state. 

 

General Questions & Answers

• Does this reset every year or would a Seller qualify once and pay sales tax from then on?

  • Could vary by state but generally this does NOT reset each year. Once a Seller reaches that point, that Seller pay that state's taxes from then on.

• Does that affect sales from June 2018 onward or does it apply to past sales?

  • Depends on the State. Most start as of the date they announced the new regulations, although some States may look at the previous 12 months from that date. Sellers will not have to pay backdated tax, it's just to determine if they qualify.

• If a Seller qualifies, would they pay state, county, and city taxes? Or just state tax rates?

  • Depends on the state, but most will have to charge county, city, state, or any other applicable tax rates.

• Would Sellers have to send taxes to different states or would it go through their state?

  • Most States require that the business pay through their state.

 

Alabama

Threshold: $250,000 in sales per year, based on the previous year

Effective date: October 1, 2018

Reference: https://revenue.alabama.gov/2018/07/03/ador-announces-sales-and-use-tax-Reference-for-online-sellers/

Alaska

No new changes currently implemented.

Arizona

No new changes currently implemented.

Arkansas

Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year

Effective Date: TBD

Reference: https://legiscan.com/AR/text/HB1002/2019

California

Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year

Effective date: April 1, 2019

Reference: https://www.cdtfa.ca.gov/taxes-and-fees/L565.pdf

Colorado

Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year

Effective Date: December 1, 2018 (Grace Period: May 31, 2019)

Reference: https://www.colorado.gov/pacific/tax/sales-tax-changes

Connecticut

Threshold: $250,000 in annual sales or 200 transactions in the previous or current calendar year

Effective Date: December 1, 2018

Reference: http://www.ct.gov/drs/cwp/view.asp?q=603004

Delaware

No new changes currently implemented.

Florida

No new changes currently implemented.

Georgia

Threshold: $250,000 in annual sales or 200 transactions in the previous or current calendar year

Effective Date: January 1, 2019

Reference: http://www.legis.ga.gov/legislation/en-US/Display/20172018/HB/61

Hawaii

Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year

Effective Date: July 1, 2018

Reference: http://files.hawaii.gov/tax/news/announce/ann18-10.pdf

Idaho

Threshold: $10,000 or more in the previous calendar year

Effective date: July 1, 2018

Reference: https://tax.idaho.gov/n-feed.cfm?idd=4190

Illinois

Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year

Effective Date: October 1, 2018

Reference: http://www.ilga.gov/legislation/publicacts/100/PDF/100-0587.pdf,

Indiana

Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year

Effective date: October 1, 2018

Reference: https://www.in.gov/dor/6367.htm

Iowa

Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year

Effective Date: January 1, 2019

Reference: https://www.legis.iowa.gov/docs/publications/SOL/967604.pdf#SF2417

Kansas

No new changes currently implemented.

Kentucky

Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year

Effective Date: July 1, 2018

Reference: https://revenue.ky.gov/News/Pages/Sales-and-Use-Tax-Collections-by-Remote-Retailers-U.S.-Supreme-Court-Ruling.aspx

Louisiana

Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year

Effective Date: January 1, 2019

Reference: http://revenue.louisiana.gov/LawsPolicies/RSIB%2018-001%20-%20Remote%20Sellers%20Impact%20of%20Wayfair.pdf

Maine

Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year

Effective Date: July 1, 2018

Reference: https://legislature.maine.gov/legis/bills/bills_128th/billtexts/SP048301.asp

Maryland

Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year

Effective date: October 1, 2018

Reference: http://mgaleg.maryland.gov/pubs/committee/aelr/2018-aelr-synopses-emergency-regulations.pdf

Massachusetts

Threshold: $500,000 in annual sales or 100 transactions in the previous or current calendar year

Effective Date: October 1, 2017

Reference: https://www.mass.gov/regulations/830-CMR-64h17-vendors-making-internet-sales

Michigan

Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year

Effective date: October 1, 2018

Reference: https://www.michigan.gov/documents/treasury/RAB_208-16_629240_7.pdf

Minnesota

Threshold: $100,000 in annual sales or 100 transactions in the previous or current calendar year

Effective Date: October 1, 2018

Reference: http://www.revenue.state.mn.us/newsroom/Documents/20180725%20Wayfair%20Update.pdf

Mississippi

Threshold: $200,000 in annual sales in the previous or current calendar year

Effective Date: September 1, 2018

Reference: http://www.dor.ms.gov/Press%20Releases/Wayfair%20NEW.pdf

Missouri

No new changes currently implemented.

Montana

No new changes currently implemented.

Nebraska

No new changes currently implemented.

Nevada

Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year

Effective Date: October 1, 2018

Reference: https://tax.nv.gov/FAQs/Remote-Sellers

New Hampshire

No new changes currently implemented.

New Jersey

Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year

Effective Date: November 1, 2018

Reference: https://www.state.nj.us/treasury/taxation/remotesellers.shtml

New Mexico

No new changes currently implemented.

New York

No new changes currently implemented.

North Carolina

Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year

Effective Date: November 1, 2018

Reference: https://files.nc.gov/ncdor/documents/files/sd-18-6_0.pdf

North Dakota

Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year

Effective Date: October 1, 2018, or 60 days after taxpayer meets the threshold, whichever is later

Reference: https://www.nd.gov/tax/remoteseller

Ohio

Only affects retailers selling software on computers and phones, or who have servers located in Ohio

Reference: http://src.bna.com/qFB, https://www.tax.ohio.gov/Portals/0/sales_and_use/nexususetaxst2017-02-2017.pdf

Oklahoma

Threshold: Sales exceeding $10,000 in the preceding 12 month calendar period

Effective Date: July 1, 2018

Reference: http://webserver1.lsb.state.ok.us/cf_pdf/2017-18%20ENR/hB/HB1019XX%20ENR.PDF

Oregon

No new changes currently implemented.

Pennsylvania

Threshold: Sales of $10,000 or more in the previous 12-month period

Effective Date: April 1, 2018

Reference:http://www.revenue.pa.gov/GeneralTaxInformation/Tax%20Types%20and%20Information/SUT/MarketPlaceSales/Pages/Remote-Sellers.aspx

Rhode Island

Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year

Effective Date: August 17, 2017

Reference: http://www.tax.ri.gov/Non-collecting%20retailers/index.php

South Carolina

Threshold: Gross revenue exceeding $100,000 in the previous or the current calendar year

Effective Date: November 1, 2018

Reference: https://dor.sc.gov/remotesellers

South Dakota

Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year

Effective date: November 1, 2018

Reference: http://sd.gov/remoteseller

Tennessee

No new changes currently implemented.

Texas

No new changes currently implemented.

Utah

Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year

Effective Date: January 1, 2019

Reference: https://le.utah.gov/~2018S2/bills/static/HB2002.html

Vermont

Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year

Effective Date: July 1, 2018

Reference: http://tax.vermont.gov/business-and-corp/sales-and-use-tax/sales-and-use/wayfair

Virginia

No new changes currently implemented.

Washington

Threshold: $10,000 in annual sales or 200 transactions in the previous or current calendar year

Effective Date: October 1, 2018

Reference: https://dor.wa.gov/find-taxes-rates/retail-sales-tax/marketplace-fairness-leveling-playing-field

West Virginia

Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year

Effective Date: January 1, 2019

Reference: https://tax.wv.gov/Business/SalesAndUseTax/RemoteSellers/Pages/RemoteSellersAndWestVirginiaTax.aspx

Wisconsin

Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year

Effective Date: October 1, 2018

Reference: https://www.revenue.wi.gov/Pages/Businesses/remote-sellers.aspx

Wyoming

Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year

Effective Date: February 1, 2019

Reference: https://sites.google.com/a/wyo.gov/wy-dor/Remotesellersbulletin2.pdf