50-State List of Remote Seller Sales Tax and Marketplace Facilitator Tax Rules 3 weeks ago

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Own an ecommerce business and want to see a consolidated list of remote seller sales tax requirements? Look no further!

Many states have passed marketplace tax laws or marketplace facilitator tax laws that require marketplaces like Amazon and eBay to collect sales tax or provide reports on applicable sales.

A lot of marketplaces now collect and remit sales tax on behalf of their sellers. That’s good news for sellers because it reduces the cost of compliance, but many questions and uncertainties still remain. But what about those states that don’t require marketplaces to collect?

Amazon’s Marketplace Tax Page

eBay’s Sales Tax Page

We’ll provide the dates and marketplace facilitator and/or remote seller sales tax requirements as stated on the tax agency’s websites so that you can see them all in one place.

States may have different requirements regarding collection, remittance, and reporting, so you’ll want to visit the tax agency’s website for current information.

We’ll do our best to provide accurate information, but many states have pending legislation or litigation that may affect their laws. Visit the state’s tax agency for updates.

You should talk to a tax professional about your business. 

Alabama

Called the Simplified Sellers Use Tax, Alabama will require marketplace facilitators with sales to Alabama residents in excess of $250,000 to collect sales tax beginning on January 1, 2019. From the Alabama Department of Revenue website:

Remote sellers with annual Alabama sales in excess of the rule’s $250,000 small seller exception should register for the Alabama Simplified Sellers Use Tax Program (SSUT) and begin collecting no later than October 1, 2018.

Alaska

Alaska has no state sales tax, but cities may still charge sales tax. Visit the Department of Revenue’s website for more information.

Arizona

Arizona has a transaction privilege tax (TPT) instead of a sales tax. Individuals are required to pay a use tax. Visit the Department of Revenue’s website for more information.

Arkansas

Read more about remote sellers on the Department of Finance and Administration’s website.

California

Publication 109 on Internet Sales gives sellers more information regarding marketplace sellers. Publication 77 details whether or not you’re required to collect sales tax if you’re an out-of-state seller and are engaged in business in California.

Post-Wayfair rule from the Department of Tax and Fee Administration for remote sellers beginning April 1, 2019:

  • The retailer’s sales into California exceed $100,000, or
  • The retailer made sales into California in two hundred (200) or more separate transactions.

Colorado

Colorado’s Department of Revenue has this to say about out-of-state retailers and economic nexus. The start date is December 1, 2018.

Any out-of-state retailer with substantial nexus is required to register for a sales tax license and to collect and remit Colorado sales taxes.  Any out-of-state retailer that does not have substantial nexus is not required to register for a sales tax license and is not required to collect and remit sales tax.  Retailers without substantial nexus are those who have: 1) no physical presence in the State of Colorado; 2) less than $100,000 in gross sales into the State of Colorado in the current or previous calendar year; and 3) fewer than 200 transactions into the State of Colorado in the current or previous calendar year.

Connecticut

Connecticut Department of Revenue Services Special Notice 2018(5) has more information regarding the collection of sales tax. See all 2018 Special Notices.

Both Marketplace facilitators and remote sellers are required to collect sales tax effective December 1, 2018.

The threshold for out-of-state sellers is:

1. Their Connecticut sales exceed a threshold of 200 transactions during the preceding twelvemonth period (ending September 30) (previously, the threshold was 100 sales);

and

2. Their gross receipts are $250,000 or more during that twelve-month period.

Delaware

Delaware does not have a state sales tax, but it does have a gross receipts tax. Learn more from the Delaware Division of Revenue Internet Sales page.

Florida

Visit Florida’s Department of Revenue site for information regarding out-of-state businesses. Florida has yet to release any changes regarding economic nexus, but that may change in 2019.

Georgia

George has passed House Bill 61 requiring remote sellers to collect and remit or report sales tax. Effective January 1, 2019:

Obtained gross revenue, in an amount exceeding $250,000.00 in the previous or current calendar year, from retail sales of tangible personal property to be delivered electronically or physically to a location within this state to be used, consumed, distributed, or stored for use or consumption in this state, OR

Conducted 200 or more separate retail sales of tangible personal property in the previous or current calendar year to be delivered electronically or physically to a location within this state to be used, consumed, distributed, or stored for use or consumption in this state.

Hawaii

Hawaii has a general excise tax. Tax announcement 2018-10 provides more details about remote sellers and excise tax collection, remittance, and reporting. Direct link to 2018-10 PDF. Effective date is July 1, 2018.

From the PDF:

(1) Taxpayer has a physical presence in Hawaii;

(2) In the current or preceding calendar year, taxpayer has gross income or gross proceeds of $100,000 or more from any of the following, or combination of the following, activities:

a. Tangible property delivered in Hawaii;

b. Services used or consumed in Hawaii2 ; or

c. Intangible property used in Hawaii; or

(3) In the current or preceding calendar year, taxpayer has entered into 200 or more separate transactions involving any of the following, or combination of the following, activities:

a. Tangible property delivered in Hawaii;

b. Services used or consumed in Hawaii; or

c. Intangible property used in Hawaii.

Idaho

Visit the Sales/Use Tax Hub from the State Tax Commission. The tax commission has this to say about out-of-state shopping:

Internet and catalog companies that have a business location or employees in Idaho must collect Idaho sales tax. And a few businesses without an Idaho presence also voluntarily collect the tax.

Illinois

Here is the link for the Illinois Department of Revenue’s page on Wayfair.

Pursuant to the enactment of Illinois Public Act 100-587 and the subsequent U.S. Supreme Court decision in South Dakota v. Wayfair, Inc, remote (out-of-state) sellers with either cumulative gross receipts from Illinois sales of $100,000 or more, or 200 or more separate Illinois transactions, are required to register to collect and remit Illinois Use Tax for sales of tangible personal property made on or after October 1, 2018.

Indiana

Read the tax bulletin from the Department of Revenue or visit the Wayfair-related page on the Department of Revenue’s page.

Collection goes into effect on October 1, 2018 with the threshold below:

The threshold applies regardless of whether any of the 200 transactions would have been subject to Indiana sales or use tax or whether any of the $100,000 of revenue was generated by taxable sales.

Iowa

Both remote sellers and marketplace facilitators are required to collect taxes starting January 1, 2019 if they meet one of the following:

$100,000 or more in products and/or services or

200 or more separate sales transactions

See the rule for remote sellers and marketplace facilitators.

Kansas

See more information about sales tax from the Department of Revenue.

Kentucky

Kentucky Department of Revenue has this threshold for remote sellers:

HB 487, effective July 1, 2018, requires remote retailers with 200 or more sales into the state or $100,000 or more in gross receipts from sales into the state to register and collect Kentucky sales and use tax.

Louisiana

More clarity for remote sellers is currently in the works. Visit the Department of Revenue Remote Sellers website for more information.

Maine

Maine Revenue Services has a website with links to guidance for remote sellers. The website lists this threshold for remote sellers with an effective date of July 1, 2018:

A seller not otherwise required to register under Maine sales tax law meets the requirements of section 1951-B if, during the current or previous calendar year, it either sold tangible personal property, products transferred electronically, or taxable services for delivery into Maine in at least 200 separate transactions, or its gross revenues from Maine sales of tangible personal property, products transferred electronically, or taxable services exceeded $100,000.

Maryland

Visit the Comptroller of Maryland’s website to learn more about sales and use tax. According to the September 2018 Sales and Use Tax alert, the threshold for remote sellers is. This is effective October 1, 2018.

Gross revenue from the sale of tangible personal property or taxable services delivered into Maryland exceeds $100,000; or

Sales of tangible personal property or taxable services for delivery into Maryland in 200 or more separate transactions.

Massachusetts

Visit Massachusett Department of Revenue’s Sales and Use Tax page for more information.

Michigan

Read the Department of Treasury’s website on Sales and Use Tax for Remote Sellers. The page states:

Consistent with Wayfaireffective after September 30, 2018, Treasury will require remote sellers with sales exceeding $100,000 to – or more than 200 transactions with – purchasers in Michigan in the previous calendar year to pay sales tax.

Minnesota

Minnesota required marketplace facilitators or providers to collect sales tax on October 1, 2018.

Read the Sales Tax FAQ for more information, including the small seller exemption:

Minnesota law provides a Small Seller Exception, which does not require remote sellers to collect sales tax until their sales during a period of 12 consecutive months total either:

  • 100 or more retail sales shipped to Minnesota
  • 10 or more retail sales shipped to Minnesota that total more than $100,000

Mississippi

Visit the Department of Revenue’s site for Online Seller Guidance regarding sales tax. Or view the PDF directly. The threshold is quoted below.

Remote sellers with annual Mississippi sales in excess of the $250,000 small seller exception should register for a Mississippi Use Tax Account and begin collecting tax no later than September 1, 2018.

Missouri

Missouri House Bill 2390 deals with remote sellers and sales tax.

Montana

Montana has no state sales tax. Visit the Department of Revenue’s sales tax page for more information.

Nebraska

See the Department of Revenue’s FAQ on the collection of sales tax for remote sellers. The effective date for remote sellers to collect sales tax is January 1, 2019.

The small seller exemption is

Remote sellers are only required to register and collect Nebraska tax if they have more than $100,000 of sales into Nebraska or 200 or more separate transactions for delivery into the state annually.

Nevada

Read the Department of Taxation’s FAQ on Remote Sellers. The start date is October 1, 2018. See their exemption below.

Remote sellers are only required to register and collect Nevada sales or use tax if, in the previous or current calendar year, they have:

–  More than $100,000 of retail sales into Nevada, or
–  200 or more separate retail transactions for delivery into the state

New Hampshire

There is no state sales tax for New Hampshire.

New Jersey

See the Department of Taxation’s Sales and Use Tax information page for more information. New Jersey required marketplace providers to collect sales tax on November 1, 2018.

If you’re a remote seller, the threshold is:

  • The remote seller’s gross revenue from sales of tangible personal property, specified digital products, or services delivered into New Jersey during the current or prior calendar year, exceeds $100,000or
  • The remote seller sold tangible personal property, specified digital products, or services delivered into New Jersey in 200 or more separate transactions during the current or prior calendar year.

New Mexico

New Mexico has a gross receipts tax. The Santa Fe New Mexican reports that New Mexico is considering online sales tax as a result of the Wayfair ruling.

New York

Visit the Department of Taxation and Finance’s page on Sales and Use Tax for more information.

North Carolina

North Carolina Department of Revenue states this for remote sales:

All remote sellers having gross sales in excess of one hundred thousand dollars ($100,000) sourced to North Carolina or two hundred (200) or more separate transactions sourced to North Carolina in the previous or current calendar year (collectively “Threshold”) must register to collect and remit sales and use tax to North Carolina effective November 1, 2018 or 60 days after a remote seller meets the Threshold, whichever is later.

North Dakota

Visit the North Dakota Tax website for more information regarding remote seller sales tax. The start date is October 1, 2018, and the exception is as follows:

  • Taxable sales shipped to North Dakota meet or exceed $100,000 OR
  • Taxable sales shipped to North Dakota meet or exceed 200 separate transactions

Ohio

Check out Ohio Department of Taxation’s Sales and Use Tax FAQ for more information about remote sellers.

Oklahoma

This news release required remote sellers and marketplace providers to collect sales tax on July 1, 2018. Read this news release from the Oklahoma Tax Commission for more information. The threshold for small sellers is:

State law (HB1019xx) requires remote sellers who sold at least $10,000 worth of taxable merchandise in the state of Oklahoma during the previous 12 months to collect and remit the tax or to comply with statutory notice and reporting requirements.

Oregon

Oregon has no state sales tax. Visit the Department of Revenue’s page for more information.

Pennsylvania

Pennsylvania required marketplace facilitators to collect sales tax on March 1, 2018. Visit the Department of Revenue’s page for more information regarding remote sellers. The exception is below.

A remote seller that makes taxable sales totaling $10,000 or more to Pennsylvania customers in the previous calendar year must elect one of two options by March 1, 2018

Rhode Island

Visit the Division of Taxation’s website for more information. View this direct link to the PDF for more information regarding a non-collecting retailer (similar to or same as a remote seller). The threshold is below:

Rhode Island General Laws § 44-18.2-3 requires all non-collecting retailers who in the previous calendar year made $100,000 or more in gross revenues from sales in Rhode Island or 200 or more transactions in Rhode Island to either (1) register for a Rhode Island sales tax permit and collect and remit the sales or use tax in Rhode Island or (2) comply with various notice requirements in the statute.

Marketplace facilitators or retail sale facilitators have certain filing requirements.

South Carolina

Look at the Department of Revenue’s site for more information. The threshold is below with a start date of November 1, 2018.

In South Carolina, a remote seller whose gross revenue from sales of tangible personal property, products transferred electronically, and services delivered into South Carolina exceeds $100,000 in the previous or current calendar year has economic nexus (substantial nexus) with South Carolina and is responsible for obtaining a retail license and remitting South Carolina Sales and Use Tax.

South Dakota

Visit the Department of Revenue’s site for more information. South Dakota’s marketplace facilitator tax law (Senate Bill 2) goes into effect on March 1, 2019.

If you’re a remote seller, then the threshold is below:

  • Your business’s gross revenue from sales into South Dakota exceeded $100,000; or
  • Your business made sales for delivery into South Dakota in 200 or more separate transactions.

Tennessee

Tennessee’s Department of Revenue has this guidance regarding the Wayfair ruling, but note that this may likely change.

If a dealer has no physical presence in Tennessee, the dealer is not required to collect Tennessee sales and use tax until the Department issues public notice stating the specific date and circumstances under which such dealers must begin to collect and remit the tax.

Texas

Visit the Comptroller’s website for FAQs regarding remote sellers.

Utah

Utah’s State Tax Commission has a page devoted to remote sellers and sales tax. The start date is January 1, 2019, and the threshold for small sellers is below.

  1. receives gross revenue of more than $100,000 from the sale of tangible personal property, any product transferred electronically, or services for storage, use, or consumption in Utah; or
  2. sells tangible personal property, products transferred electronically, or services for storage, use, or consumption in Utah in 200 or more separate transactions.

Vermont

Visit the Department of Taxes for more information regarding sales and use tax. Remote sellers were required to collect and remit beginning July 1, 2018, and the threshold is below:

An out-of-state vendor making sales into the State must register and collect sales tax if they made sales of at least $100,000 or 200 individual transactions during any preceding twelve -month period.

Virginia

Visit the Virginia Tax website for more information regarding sales and use tax.

Washington

Visit the Department of Revenue’s site for remote sellers. Both marketplace facilitators and remote sellers were required to start collecting on October 1, 2018. The exception is below.

Beginning October 1, 2018, remote businesses that exceed $100,000 in retail sales to, or have 200 or more annual transactions with, Washington consumers must register their business and collect and submit retail sales/use tax.

West Virginia

Visit the State Tax Department website for more information. The start date is January 1, 2019, and the small seller exception is below.

This collection requirement does not apply to a remote seller that during calendar year 2018 had gross sales of tangible personal property and/or services for delivery in West Virginia of $100,000 or less and had fewer than 200 sales transactions for delivery in West Virginia.

Wisconsin

Visit the Department of Revenue’s site for more information on remote sellers. The start date is October 1, 2018 with the exception below.

The rule is consistent with the Court’s decision in Wayfair, which approved a small seller exception for sellers who do not have annual sales of products and services into the state of (1) more than $100,000, or (2) 200 or more separate transactions.

Wyoming

See this direct link to the PDF for Wyoming’s guide to remote sellers and sales tax. The start date is February 1, 2019 and the threshold is below.

This requirement applies only if in the current calendar year or the immediately preceding calendar year; (1) the gross revenue from sales into Wyoming exceeds $100,000 or (2) the business has made 200 or more separate transactions for delivery into Wyoming.

States That Require Marketplace Facilitators to Collect and Remit

This list is by no means final. Many states are in the process of determining how to deal with the Wayfair decision.

  • Alabama – January 1, 2019
  • Connecticut – December 1, 2018
  • Iowa – January 1, 2019
  • Minnesota – October 1, 2018
  • New Jersey – November 1, 2018
  • Oklahoma – July 1, 2018
  • Pennsylvania – March 1, 2018
  • South Dakota – March 1, 2019
  • Washington – October 1, 2018

Conclusion

Because of the Wayfair ruling in June 2018, most, if not all, of the states will look toward requiring remote sellers to register, collect, and remit sales tax.

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