North Carolina has enacted legislation, effective July 1, 2020, that removes the economic nexus threshold for purposes of the state’s marketplace nexus provisions. North Carolina’s marketplace nexus provisions took effect on February 1, 2020 with an economic nexus threshold of gross sales in excess of $100,000 or 200 or more separate transactions. The new legislation removes that threshold. The legislation states that a marketplace facilitator engaged in business in North Carolina is considered the retailer of each marketplace-facilitated sale it makes and is liable for collecting and remitting sales and use tax on all such sales. A marketplace facilitator is required to comply with the same requirements and procedures as all other retailers who are required to be registered to collect and remit sales and use tax in North Carolina regardless of whether it has physical presence in the state. This new standard applies to sales occurring on or after July 1, 2020. This is a significant change, and marketplace facilitators will need to take this into consideration when determining if they have nexus in North Carolina. For our previous news item, see North Carolina Enacts Marketplace Nexus Legislation. (Ch. 58 (H.B. 1080), Laws 2020, effective July 1, 2020)