On October 1, 2018, ten more states will be enacting and immediately imposing economic nexus standards. Alabama, Illinois, Indiana, Kentucky, Maryland, Michigan, Minnesota, North Dakota, Washington, and Wisconsin are joining the economic nexus party. At a high-level, here is an explanation of each state's economic nexus thresholds.
Alabama - Companies with gross sales of at least $250,000 in Alabama during the prior calendar year have established economic nexus regardless of the number of individual transactions. These companies must register to collect and remit sales tax.
Illinois - Companies with gross sales of $100,000 or greater OR 200 individual transactions in Illinois during the preceding 12 months have established economic nexus. Illinois requires companies to determine whether the thresholds have been met on a quarterly basis. Companies that have established economic nexus must register to collect and remit sales tax.
Indiana - Companies with gross sales of $100,000 or greater OR 200 individual transactions in Indiana during the previous or current calendar year have established economic nexus. These companies must register to collect and remit sales tax.
Kentucky - Companies with gross sales of $100,000 or greater OR 200 individual transactions in Kentucky during the previous or current calendar year have established economic nexus. These companies must register to collect and remit sales tax.
Maryland - Companies with gross sales of $100,000 or greater OR 200 individual transactions in Maryland during the previous calendar year have established economic nexus. These companies must register to collect and remit sales tax.
Michigan - Companies with gross sales of $100,000 or greater OR 200 individual transactions in Michigan during the previous calendar year have established economic nexus. These companies must register to collect and remit sales tax.
Minnesota - Companies with gross sales of $100,000 or greater OR 200 individual transactions in Illinois during the preceding 12 months have established economic nexus. Companies that have established economic nexus must register to collect and remit sales tax.
North Dakota - Companies with gross sales of $100,000 or greater OR 200 individual transactions in North Dakota during the previous or current calendar year have established economic nexus. These companies must register to collect and remit sales tax.
Washington - Companies with gross sales of $10,000 or greater in Washington during the previous or current calendar year have established economic nexus. These companies may elect to collect and remit tax OR comply with state’s use tax notice and reporting requirements. Remote sellers exceeding $100,000 in Washington may not elect to abide by the notice and use tax reporting requirement. These companies must register to collect and remits sales tax.
Wisconsin - Companies with gross sales of $100,000 or greater OR 200 individual transactions in Wisconsin during the previous or current calendar year have established economic nexus. These companies must register to collect and remit sales tax.