TaxJar

Economic Nexus: New States Begin Requirements October 1st

by Lizzy Greenburg

As an eCommerce seller, it’s now more important than ever to keep track of your economic nexus requirements. This is especially true for sellers with nexus in states outside of their home state (referred to as ‘remote sellers’).

Over the past few months following the Wayfair vs. South Dakota decision, many states have been enacting laws and defining new requirements for remote sellers to comply with sales tax in each individual state. At TaxJar, we’ve been working hard to keep track of all of these changes on our blog so we wanted to share a few important ones that are beginning next week.

A wave of new states are coming October 1st

While you can always view a full list of every state that has an economic nexus laws in place, we wanted to highlight a few that have enforcement dates coming up October 1, 2018.

Here is a list of states with economic nexus laws starting October 1, 2018: 

Alabama

Illinois

Threshold: $100,000/year in gross revenue, or makes sales into Illinois in more than 200 separate transactions in the previous twelve months.

Full Text: You can read the text of Illinois economic nexus law here.

Indiana 

  • Threshold: $100,000 in gross revenue in the previous calendar year, or makes sales. into Indiana in more than 200 separate transactions in the current or last calendar year.
  • Full Text: You can read the text of Indiana’s economic nexus law here, and a summary on p. 13 here.

Maryland

Threshold:$100,000/year in gross revenue, or makes sales into Maryland in more than 200 separate transactions in the current or last calendar year.

Full Text: You can read more details of Maryland economic nexus law here.

Michigan

Threshold:$100,000 in gross revenue in the previous calendar year, or makes sales into Michigan in more than 200 separate transactions in the previous calendar year.

Full Text: You can read Michigan economic nexus law here.

Minnesota

Threshold:$100,000 in gross revenue in the last 12 months or makes sales into Minnesota in more than 100 separate transactions in the previous 12 months.

Full Text: You can read Minnesota economic nexus law here.

New Jersey

Nevada

North Dakota

Washington (*this state has both an economic nexus threshold and a Notice & Report threshold)

Wisconsin

  1. Threshold: Sales of $100,000 or more annually or 200 or more separate transactions into the state in the current or last calendar year.
  2. Full Text: Wisconsin’s ruling is a regulation rather than a law. You can read Wisconsin’s guidance for remote sellers on economic nexus here.

How do I find out if I meet the threshold for any of these states?

Find out where your business is required to collect sales tax with TaxJar

At TaxJar we know that economic nexus is complicated and so we’ve created a tool to help simplify and find out where you stand in minutes! Just start a free 30-day trial of TaxJar to take advantage of our FREE Sales & Transactions Checker right on your dashboard!

TaxJar Sales and Transactions Sales Tax Nexus Checker

The TaxJar Sales & Transactions Checker will show you:

  1. Specific states where you exceed economic thresholds
  2. The amount of revenue you’ve generated in these states
  3. The number of transactions you’ve made in these states
  4. Next steps if you have new state sales tax requirements

It’s really that easy!

I meet the economic threshold requirement in a certain state. Now what?

Here’s what we recommend as next steps:

  1. Register for a sales tax permit in that state
  2. Choose a technology like TaxJar to help you manage multi-state compliance. Sign up for a free 30-day trial to see how we can help you save time!
  3. Connect TaxJar once to all of the places you sell
  4. Ensure all your eCommerce channels are setup correctly to collect sales tax
  5. Enroll in AutoFile and tell us how often you need to file
  6. 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:

  1. Read our do it yourself instructions for every state
  2. Visit TaxJar.com/register to have one of our expert partners do it for you (~$100 each state not including state’s fees)

Who will help me file returns in multiple states?

We help your business save on submitting your returns with our automated filing service called AutoFile.  Learn more about how AutoFile can handle all of your returns in as many states as you’d like.

I’m interested in a full-service sales tax solution for my growing eCommerce business. Can you help me?

Of course. We’re here to help in any way we can. For online sellers looking to automate sales tax on their own, we recommend TaxJar Basic which starts at just $17/mo for an annual subscription. You can get started today and be up an running in minutes.

If you manage a more complicated business and want to discuss your specific sales tax needs to find out if TaxJar is a good fit, we recommend contacting our TaxJar Plus team. Our TaxJar Plus team to determine if our full-service solution is right for your needs. Get in touch with our sales team today!

I have general questions about economic nexus and need consulting help. Who can I talk to?

We’re here to talk technology with you, but if you have more questions we recommend speaking with a vetted sales tax expert to answer specific questions about what economic nexus means for your business.

Are you ready for the October 1st changes? Drop us a note in the comments below with your most helpful tips to managing economic nexus!

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