Here at the TaxJar blog we often talk about the difficult online sellers face in calculating sales tax rates then collecting and remitting sales tax. We’ve talked less often about the sales tax permits that are required by states before can even begin collecting sales tax. Some sales tax permits cost money, some are free, and some must be renewed from time to time.
For your convenience, we have compiled a list of states that require online sellers to renew their sales tax permits. Find out below if one of the states where you have sales tax nexus is on the list, and be sure your sales tax permit is current.
States that Require Sellers to Renew Sales Tax Permits
These states require anyone holding a sales tax permit to renew it periodically. Some states require the seller to take action. Others renew automatically unless a change takes place in your business. Please check with the state’s department of revenue or other authority in charge of taxation for specific renewal dates for your permit.
Arizona – permit must be renewed every year by January 1st. Free unless your business has changed location, name or DBA, jurisdiction or rental location.
Connecticut – Your sales tax permit expires every 5 years, but there is no cost to renew if the permit is active (Check the status of your Connecticut sales tax permit)
Louisiana – renew within 60 days of the expiration date on the certificate (Check the status of your Louisiana sales tax permit)
New York – the state will send you a letter informing you that you have been “selected for renewal” (Check the status of your New York sales tax permit)
Oklahoma – sales tax permit is issued on a probationary basis for six months and will be automatically renewed for 30 months (Check the status of your Oklahoma sales tax permit)
Additionally, Maryland, Idaho and South Carolina require sellers to renew temporary sales tax permits. (This use case generally does not apply to online sellers.) Some states may require you to renew your sales tax permit if you make substantial changes to your business, such as a change of ownership or change of location.
Another note: Some localities within states may also require sales tax permits. Be sure to check with your state’s taxing authority or an accounting professional to ensure that you are in complete compliance.
Need to apply for or renew your sales tax permit in an FBA state? Check out this list of states and where you go to renew your sales tax permit.
To the best of our knowledge, states that were not listed here do not require sales tax permit renewal (as of this writing). Five states do not have a statewide sale tax at all. Always be sure to contact your state’s department of revenue or a financial professional if you have questions or need advice about your business.