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As of 1/1/2023
Since 2008, states have enacted a variety of nexus laws to require remote (out-of-state) sellers to collect tax or provide information about in-state customers, collectively referred to as “Remote Seller Nexus”. This chart lists the states that have passed one or more of these types of legislation, along with the effective dates. Definitions for each type of nexus are found below the chart.
How to use this chart:Find the state you’re looking for and click on the effective dates for more details about 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. This chart includes economic nexus legislation enacted following the South Dakota v. Wayfair decision. For more details on economic nexus, visit our Economic Nexus State by State Chart. |
| State | Click-Through Nexus | Affiliate Nexus | Reporting Requirements | Economic Nexus | Marketplace Nexus |
|---|---|---|---|---|---|
| Alabama | |||||
| Alaska | 4/1/2020 – Alaska Remote Seller Sales Tax Commission Effective date unique for each municipality – get the details |
4/1/2020 – Alaska Remote Seller Sales Tax Commission Effective date unique for each municipality – get the details |
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| Arizona | |||||
| Arkansas | 10/27/2011 – repealed effective 6/30/2019 |
10/27/2011 – repealed effective 6/30/2019 |
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| California | 9/15/2012 – repealed effective 4/1/2019 |
9/15/2012 – repealed effective 4/1/2019 |
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| Colorado | 7/1/2014 – repealed effective 6/1/2019 |
7/1/2014 – repealed effective 6/1/2019 |
Grace period through 5/31/2019 – notice & reporting still required |
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| Connecticut | |||||
| District of Columbia | |||||
| Florida | |||||
| Georgia | 1/1/2019 – repealed effective 4/28/2019 |
1/1/2019 – see state notice, see additional state notice (downloadable PDF) |
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| Hawaii | |||||
| Idaho | |||||
| Illinois | 1/1/2015 – repealed effective 6/28/2019 – re-enacted effective 1/1/2020 |
7/1/2011 – repealed effective 6/28/2019 – re-enacted effective 1/1/2020 |
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| Indiana | |||||
| Iowa | |||||
| Kansas | |||||
| Kentucky | 7/1/2013 – repealed effective 7/1/2019 |
10/1/2018 – see state notice and FAQ page |
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| Louisiana | 7/1/2020 or within 30 days of passing threshold with collection no later than 60 days after passing threshold |
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| Maine | |||||
| Maryland | |||||
| Massachusetts | 10/1/2017 – challenged but not stayed – see state notice New thresholds: 10/1/2019 |
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| Michigan | |||||
| Minnesota |
New thresholds: 10/1/2019 |
New thresholds: 10/1/2019 |
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| Mississippi | |||||
| Missouri | |||||
| Nebraska | 1/1/2019 (administrative announcement) – see state notice 4/1/2019 (enacted legislation) |
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| Nevada | |||||
| New Jersey | |||||
| New Mexico | |||||
| New York | |||||
| North Carolina | |||||
| North Dakota | |||||
| Ohio | 7/1/2015 – repealed effective 8/1/2019 |
7/1/2015 – repealed effective 8/1/2019 |
8/1/2019 – new thresholds |
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| Oklahoma | Sales Tax as alternative to Notice/Reporting: 7/1/2018 – see state notice Economic Nexus: 11/1/2019 – mandatory registration for remote sellers |
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| Pennsylvania | 4/1/2018 – TPP; 4/1/2019 – digital as alternative to Notice/Reporting |
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| Puerto Rico | |||||
| Rhode Island | 8/17/2017 – repealed effective 7/1/2019 |
8/17/2017 – register or comply with notice (through 6/30/2019) 7/1/2019 – mandatory registration |
8/17/2017 – register or comply with notice (through 6/30/2019) 7/1/2019 – mandatory registration |
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| South Carolina | 11/1/2018 administrative – see state notice 4/26/2019 legislation |
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| South Dakota | 11/1/2018 – injunction lifted – see state notice and state webpage |
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| Tennessee | |||||
| Texas | Effective 1/1/2019 but not enforced until 10/1/2019 |
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| Utah | |||||
| Vermont | 7/1/2018 (following Wayfair decision) – see state notice |
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| Virginia | |||||
| Washington | 9/1/2015 – repealed effective 3/14/2019 |
1/1/2018 – repealed effective 7/1/2019 |
B&O Tax: 7/1/2017 Sales Tax as alternative to Notice/Reporting: 1/1/2018 Economic Nexus: 10/1/2018 – see state notice |
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| West Virginia | |||||
| Wisconsin | |||||
| Wyoming |
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.
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.
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