The following states have already implemented rules to require remote sellers exceeding certain thresholds to register in their states and start collecting sales tax. However, we advise you to discuss this with your trusted CPA adviser before you register. Also, please visit our website for frequent updates as other states begin enforcing the new supreme court ruling.
Threshold collection statutes effective following Wayfair
AL – As of January 1, 2016, Alabama has required collection of tax using a simplified system and a flat 8% rate by vendors with more than $250,000 in annual sales of tangible personal property to Alabama customers.
CT – As of December 1, 2018, Connecticut will require collection by remote vendors that engage in regular or systematic solicitation of sales of tangible personal property in Connecticut; and that have annual gross receipts of $250,000 or more from such sales; and 200 or more retail sales from outside Connecticut to Connecticut customers.
GA – As of January 1, 2019, Georgia will require collection by remote vendors with more than $250,000 in annual sales of tangible personal property in Georgia or 200 or more retail sales of tangible personal property in Georgia.
HI – For tax years beginning after December 31, 2017, Hawaii requires collection by all vendors with more than $100,000 in annual Hawaii sales or 200 or more annual Hawaii sales transactions.
IA – As of January 1, 2019, Iowa will require collection by remote vendors with gross revenue from Iowa sales of at least $100,000 per year or 200 or more annual Iowa sales.
IL – As of October 1, 2018, Illinois will require collection by remote vendors with at least $100,000 in annual sales or 200 or more annual sales transactions for tangible personal property sold to Illinois customers.
KY – As of July 1, 2018, Kentucky will require collection by remote vendors with more than $100,000 in annual sales or 200 or more annual sales transactions involving sales of tangible personal property or digital products delivered or electronically transferred to a customer in Kentucky.
MA – As of October 1, 2017, Massachusetts requires collection by “Internet vendors” with more than $500,000 of annual sales (of tangible personal property or telecommunications services) and 100 or more annual sales transactions involving Massachusetts customers.
ND – North Dakota will require remote retailers not meeting the small-seller exception must register and start collecting North Dakota sales or use tax by the later of October 1, 2018 or 60 days after the remote retailer meets the small-seller exception threshold. The threshold is $100,000 or more, or 200 separate transactions, in taxable sales shipped to locations in North Dakota.
OK – As of July 1, 2018, Oklahoma will require either collection or reporting by remote sellers with at least $10,000 in annual sales subject to Oklahoma sales tax.
PA – As of April 1, 2018, Pennsylvania has required either collection or reporting by vendors with at least $10,000 in annual sales subject to Pennsylvania sales tax.
RI – As of August 17, 2017, Rhode Island began requiring either collection or reporting by vendors with at least $100,000 in annual gross revenue from, or 200 or more sales of, taxable goods or services to Rhode Island customers.
VT – As of July 1, 2018, Vermont will require collection by remote vendors that regularly, systematically or seasonally solicit sales of tangible personal property in Vermont and that have made sales of tangible property from outside Vermont for delivery in Vermont totaling at least $100,000 or at least 200 separate transactions in any prior 12-month period.
WI – As of October 1, 2018, Wisconsin will require collection by remote vendors with gross revenue from Wisconsin sales of at least $100,000 per year or 200 or more annual Wisconsin sales.
Stay tuned. We anticipate states will respond rapidly to this development, and we will continue to issue updates as the states’ reactions come into sharper focus to assist our clients in complying with future tax responsibilities.
