State laws on economic nexus vary and it’s hard to keep up if you’re doing business in multiple states. We’ve done the research for you and here’s all the information you need to know about economic nexus in Kansas.
What is economic nexus in Kansas?
With the recent South Dakota v. Wayfair Supreme Court ruling in favor of South Dakota, states are now free to pursue sales tax from eCommerce businesses who have a “significant presence” in their state.
Significant presence or “nexus” was previously defined as having a physical presence (ex: brick and mortar store, employee, or inventory in a fulfillment center like FBA). But with this recent ruling, now this definition has been expanded to include economic activity in a state as well. This concept of triggering sales tax responsibility because of your economic activity in a state is now referred to as economic nexus.
Most important, this now means that if you pass a state’s economic threshold for total revenue in that state and/or number of transactions in that state, you’re now legally required to register, collect and remit sales tax for that state.
What’s interesting, in Kansas there is no exception for small sellers, meaning there is no revenue threshold. Unless the law changes, all remote sellers regardless of their total sales will be required to register with the state and start collecting and remitting taxes beginning October 1, 2019.
Further, there is a conflicting opinion from the Attorney General due to the unique nature of this legislation, so sellers will want to monitor this law closely in order to see if it lifts to a higher requirement or is overturned. As it stands now, the Department of Revenue is still requiring out-of-state sellers to remit sales tax. Here is the DOR’s response to the Attorney General.
Check back to this blog to see if or when the state makes any changes.
What’s the threshold for economic nexus law in Kansas?
- State: Kansas
- Threshold: There is no exception for small sellers, so all remote sellers with sales in Kansas will meet economic nexus.
- Summary: According to state law, all sellers who make sales into Kansas must register for a Kansas sales tax permit regardless of sales or transactions.
- Full text: You can read guidance on the text of Kansas economic nexus law here.
When did this Kansas law go into effect or is it planned?
As of October 1, 2019, all out-of-state sellers making sales for delivery into Kansas are required to register with the Department of Revenue and collect and remit Kansas sales or use tax.
I meet the economic threshold requirement in Kansas. Now what?
Here’s a quick checklist of what to do next:
- Register for a sales tax permit in Kansas (info below)
- Choose a technology like TaxJar to help you manage multi-state compliance. Request a demo to see how we can help you save time!
- Connect TaxJar once to all of the places you sell
- Ensure all your eCommerce channels are setup correctly to collect sales tax
- Enroll in AutoFile and tell us how often you need to file
- Relax, you now handled your sales tax exposure. We’ll handle the rest for you.
Can you help me register for a sales tax permit?
Certainly! TaxJar offers these two options:
- Read our do it yourself instructions for every state
- Visit TaxJar.com/register to have one of our expert partners do it for you (~$100 each state not including state’s fees)
Who can handle my Kansas sales tax filings for me?
At TaxJar, we help more than 20,000 sellers manage their sales tax needs every month. We help your business save on submitting your returns with our automated filing service called AutoFile. Read more about how AutoFile can handle all of your returns in as many states as you’d like.
I’ve met this threshold in Kansas, now where can I ask questions?
We recommend speaking with a vetted sales tax expert to answer specific questions for your business.
And finally…I’m selling to Kansas buyers. Will TaxJar help me track nexus?
Yes! With TaxJar’s Economic Nexus Insights Dashboard, you can see where your business currently has nexus, where your business is approaching nexus, and recommended next steps on how to begin complying with sales tax in all states.
Proactive notifications let you know when you’re approaching or have reached thresholds, so you can stay in front of any changes to your nexus requirements.
Schedule a time to look at your specific sales tax needs and learn about automation.Connect with TaxJar
Do you have more questions on how economic nexus works after this ruling? Join the discussion and drop us a comment.