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
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Does this reset every year or would a Seller qualify once and pay sales tax from then on?
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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.
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Does that affect sales from June 2018 onward or does it apply to past sales?
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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.
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If a Seller qualifies, would they pay state, county, and city taxes? Or just state tax rates?
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Depends on the state, but most will have to charge county, city, state, or any other applicable tax rates.
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Would Sellers have to send taxes to different states or would it go through their state?
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Most States require that the business pay through their state.
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Alabama
Threshold: $250,000 in sales per year, based on the previous year
Effective date: October 1, 2018
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
Louisiana
Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year
Effective Date: January 1, 2019
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
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
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