Remote Seller Nexus Chart

As of 8/13/2018

BREAKING NEWS: On June 21, 2018, The U.S. Supreme Court has issued its decision in the South Dakota v. Wayfair case which will impact this chart as it relates to Economic nexus.  We are reviewing the decision and state specific implications and will be updating this shortly. To review the case, listen to our Day 1 analysis and live Q&A session.

To help navigate the impacts of the Wayfair decision, visit our Remote Seller Resources page to find state notices, videos, articles, training opportunities, and more.

Since 2008, states have enacted a variety of new nexus provisions in order to require remote sellers to collect tax or provide information about in-state customers. These types of provisions are referred to as “Remote Seller Nexus”. This chart lists the states that have passed one or more of the following types of legislation, along with the effective date for that type of legislation:

  • Click-Through Nexus
  • Affiliate Nexus
  • Economic Nexus
  • Marketplace Nexus
  • Use Tax Notice and Reporting Requirements

How to use this chart:

Find the state you’re looking for and click on the effective dates for more details on the enacted legislation. Click on the state name to see all of the news items we’ve published on nexus for that state. See below the chart for quick overviews of each type of nexus.

Please note: This chart includes only legislation that has been enacted. It does not include proposed legislation. 

State Click-Through Nexus Affiliate Nexus Reporting Requirements Economic Nexus Marketplace Nexus
Alabama

8/24/2012

7/1/2017

10/1/2018see state notice

1/1/2019

Arizona

Ruling Issued 9/20/2016

Arkansas

10/27/2011

10/27/2011

California

9/15/2012

9/15/2012

Colorado

7/1/2014

7/1/2014

7/1/2017

Connecticut

5/4/2011

5/4/2011

12/1/2018

12/1/2018see state notice

12/1/2018

Georgia

7/18/2012

10/1/2012

1/1/2019

1/1/2019

Hawaii

7/1/2018 – see state notice

Idaho

7/1/2018see state notice

7/1/2008 

Illinois

1/1/2015

7/1/2011

10/1/2018

Indiana

10/1/2018 – pending resolution of injunction – see state notice

Iowa

1/1/2019

6/11/2013 and 1/1/2019

1/1/2019

1/1/2019 – see state notice

1/1/2019

Kansas

10/1/2013

7/1/2013

Kentucky

7/1/2013

10/1/2018 – see state notice and FAQ page

Louisiana

4/1/2016

4/1/2016

7/1/2017

1/1/2019 – see state notice

Maine

10/9/2013

10/9/2013

7/1/2018see state notice

Massachusetts

10/1/2017 – litigation pending no stay – see state notice

Michigan

10/1/2015

10/1/2015

10/1/2018see state notice

Minnesota

7/1/2013

10/1/2018see state notice

10/1/2018see state notice

10/1/2018see state notice

Mississippi

9/1/2018see state notice

Missouri

8/28/2013

8/28/2013

Nebraska

1/1/2019see state notice

Nevada

10/1/2015

7/1/2015

New Jersey

7/1/2014

New York

5/8/2008

6/1/2009

North Carolina

8/7/2009

11/1/2018see state notice

North Dakota

10/1/2018 – see state notice

Ohio

7/1/2015

7/1/2015

1/1/2018 – litigation pending no stay

Oklahoma

6/9/2010 and 11/1/2016

6/9/2010 and 11/1/2016 and 4/10/2018

7/1/2018

4/10/2018

Pennsylvania

12/1/2011

12/1/2011

4/1/2018 and 4/1/2019

4/1/2018 – TPP; 4/1/2019 – digital as alternative to Notice/Reporting

4/1/2018 and 4/1/2019

Rhode Island

7/1/2009 and 8/17/2017

8/17/2017

8/17/2017

8/17/2017 – see state notice

7/31/2018 – amendment proposed via regulation

8/17/2017

South Dakota

7/1/2011

7/1/2011

5/1/2016 – pending Wayfair remand – enforcement stayed – see state notice and state webpage

Tennessee

7/1/2015

1/1/2014

3/26/2012

7/1/2017 – litigation pending – enforcement stayed

Texas

1/1/2012

Utah

7/1/2012

1/1/2019

Vermont

12/1/2015

5/24/2011 and 7/1/2017

7/1/2018 (following Wayfair decision) – see state notice

Virginia

9/1/2013

Washington

9/1/2015

1/1/2018

B&O Tax 7/1/2017; Sales Tax: 1/1/2018 as alternative to Notice/Reporting; 10/1/2018 for remote sellers exceeding $100,000/200 transactions – see state notice

1/1/2018

West Virginia

1/1/2014

Wisconsin

10/1/2018see state notice

Wyoming

7/1/2017 – litigation pending – enforcement stayed – see state notice

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Nexus Definitions

Click-Through Nexus: If a retailer or service provider contracts with an individual or company located in-state who directly or indirectly refers potential customers to the retailer through a web link for a commission/other consideration upon sale, the retailer is considered to maintain a place of business in that state. Thresholds apply and vary by state. Pay-per-click, banner and other advertising do not qualify if payment is not contingent upon a sale.

Affiliate Nexus: If an affiliated person of the retailer with a physical presence, or employees or agents in state, has sufficient nexus in state to require the retailer to collect and remit sales and use taxes on taxable retail sales of tangible personal property or services. Some states have expanded these provisions to include activities by unrelated parties performed on the seller’s behalf.

Economic Nexus: Generally correlates with a set level of sales or gross receipts activity within the state. No physical presence is required.

Marketplace Nexus: If an online marketplace operates its business in a state and provides e-commerce infrastructure as well as customer service, payment processing services and marketing, the marketplace facilitator is required to register and collect tax as the retailer rather than the individual sellers. This could also impose reporting requirements on the marketplace facilitator.

Reporting Requirements: Retailer must notify buyers that they must pay and report state use tax on their purchases. Retailer may be required to send purchasers an annual statement of all of their purchases from the retailer.

In an effort to help online sellers resolve prior sales tax liability, The Multistate Tax Commission (MTC) had negotiated a special program for online sellers that may have sales and income tax obligations from previous unpaid taxes in 25 different states. This special amnesty initiative program ran from August 17, 2017 to November 1, 2017. The program is now over. If you didn’t take advantage of the program but realize you need to evaluate your activities, you can contact us here.

Learn Even More About Nexus

Demystify sales tax nexus with the 5 Things to Understand About your Nexus Footprint white paper. It is free, printable, and will become a go-to guide for you and your frequently asked nexus questions.

Get the white paper