Sales tax and due diligence in an M&A
Those involved in mergers and acquisitions often get understandably excited about the deal,...
Understand your sales and use tax obligations by establishing where you have nexus. Below you will find a map with thresholds for each state within the the United States. This will help you evaluate your economic nexus within the US, but don't forget to evaluate your physical nexus as well. Nexus is established by economic OR physical nexus.
Updated: July 2023
Economic nexus laws by state change periodically and continue to be updated, so be sure to reference the effective date for each of the states listed below.
10/1/18
$ 250,000.00
N/A
Gross
Ala. Admin. Code § 810-6-2-.90.03; Newegg, Inc. v. Alabama Department of Revenue, Ala. Tax Tribunal, Dkt. No. S. 16-613- JP, 06/14/2018
Marketplace Facilitator Laws
1/1/2019
$ 250,000.00
1/1/20
$ 100,000.00
200
Gross
Marketplace Facilitator Laws
2020- Varies by city
$ 100,000.00
9/30/2019
$ 100,000.00
N/A
Gross
Ariz. Rev. Stat. Ann. § 42-5043(A)(1)
Marketplace Facilitator Laws
10/1/2019
$ 100,000.00
7/1/2019
$ 100,000.00
200
Aggregate
Ark. Code Ann. § 26-52-111(a)
Marketplace Facilitator Laws
7/1/2019
$ 100,000.00
4/1/2019
$ 500,000.00
N/A
Taxable
Cal. Rev. & Tax. Cd. § 6203(c)(4)
Marketplace Facilitator Laws
10/1/2019
$ 500,000.00
6/1/19
$ 100,000.00
N/A
Taxable
Colo. Rev. Stat. § 39-21-112(3.5); Colo. Code Regs. § 39-21-112(3.5)
Marketplace Facilitator Laws
10/1/2019
$ 100,000.00
12/1/18
$100,000.00*
200*
Gross
Conn. Gen. Stat. § 12-407(a)(12)(G); Conn. Gen. Stat. § 12-407(a)(15)(A); South Dakota v. Wayfair, Inc. et al., U.S. Sup. Ct., Dkt. No. 17-494, 06/21/2018, vacating and remanding S.D. S. Ct., 2017 S.D. 56 (2017).
Marketplace Facilitator Laws
12/1/2018
$ 250,000.00
1/1/2019
$ 100,000.00
200
Gross
D.C. Code Ann. § 47-2001(w); Dist. of Columbia Revenue Notice No. 2019-02, 01/02/2019
Marketplace Facilitator Laws
4/1/2019
$ 100,000.00
7/1/21
$100,000.00
N/A
Taxable
Fla. Stat. § 212.0596 ; Fla. Stat. § 212.05965
1/1/2019
$100,000.00
200
Gross
Ga. Code Ann. § 48-8-30(c.2)(2); South Dakota v. Wayfair, Inc. et al., U.S. Sup. Ct., Dkt. No. 17-494, 06/21/2018, vacating and remanding S.D. S. Ct., 2017 S.D. 56 (2017).
Marketplace Facilitator Laws
4/1/2020
$ 100,000.00
7/1/18
$ 100,000.00
200
Gross
L. 2018 41 § 1; L. 2018 41 § 3; Hawaii Dept. of Taxation Announcements No. 2018-10, , 06/27/2018; South Dakota v. Wayfair, Inc. et al., U.S. Sup. Ct., Dkt. No. 17-494, 06/21/2018, vacating and remanding S.D. S. Ct., 2017 S.D. 56 (2017)
Marketplace Facilitator Laws
1/1/2020
$ 100,000.00
6/1/2019
$ 100,000.00
N/A
Gross
Idaho Code § 63-3611(3)(h) ; Idaho Code § 63-3620E(1) ; Online Sellers - New Law Requirements, Idaho STC, 05/01/2019; News Release, Idaho STC, 06/28/2018; NewsRelease, Idaho STC, 08/15/2018
Marketplace Facilitator Laws
6/1/2019
$ 100,000.00
10/1/18
$ 100,000.00
200
Taxable
ILCS Chapter 35 § 105/2; South Dakota v. Wayfair, Inc. et al., U.S. Sup. Ct., Dkt. No. 17-494, 06/21/2018, vacating and remanding S.D. S. Ct., 2017 S.D. 56 (2017)
Marketplace Facilitator Laws
1/1/2020
$ 100,000.00
10/1/18
$ 100,000.00
200
Gross
Ind. Code § 6-2.5-2-1(c); South Dakota v. Wayfair, Inc. et al., U.S. Sup. Ct., Dkt. No. 17-494, 06/21/2018, vacating and remanding S.D. S. Ct., 2017 S.D. 56 (2017).
Marketplace Facilitator Laws
1/1/2019
$ 100,000.00
1/1/2019
$ 100,000.00
N/A
Gross
Iowa Code § 423.1(48)(2); Iowa Code § 423.14A(2); Iowa Code § 423.14A(3); South Dakota v. Wayfair, Inc. et al., U.S. Sup. Ct., Dkt. No. 17-494, 06/21/2018, vacating and remanding S.D. S. Ct., 2017 S.D. 56 (2017); Information on South Dakota v. Wayfair, Iowa Dept. of Rev., 06/25/2018
Marketplace Facilitator Laws
1/1/2019
$ 100,000.00
10/1/2019
$ 100,000.00
N/A
Gross
Kansas Revenue Department Public Notice No. 19-04, 08/01/2019; Kansas Department of Revenue, 2019 Legislative Changes & Enactments, 07/01/2019
Marketplace Facilitator Laws
7/1/21
$ 100,000.00
7/1/18
$ 100,000.00
200
Gross
Ky. Rev. Stat. Ann. § 139.340(2)(g); South Dakota v. Wayfair, Inc. et al., U.S. Sup. Ct., Dkt. No. 17-494, 06/21/2018, vacating and remanding S.D. S. Ct., 2017 S.D. 56 (2017).
Marketplace Facilitator Laws
7/1/2019
$ 100,000.00
1/1/19
$ 100,000.00
200
Gross
La. Rev. Stat. Ann. § 47:301(4)(m); La. Rev. Stat. Ann. § 47:302; Historical Notes to La. Rev. Stat. Ann. § 47:301; South Dakota v. Wayfair, Inc. et al., U.S. Sup. Ct., Dkt. No. 17-494, 06/21/2018, vacating and remanding S.D. S. Ct., 2017 S.D. 56 (2017); News Release, Louisiana Department of Revenue Statement on Supreme Court's Wayfair Decision, 06/21/2018
Marketplace Facilitator Laws
7/1/2020
$ 100,000.00
10/1/17
$100,000.00
N/A
Gross
Mass. Regs. Code 830 CMR 64H.1.7; South Dakota v. Wayfair, Inc. et al., U.S. Sup. Ct., Dkt. No. 17-494, 06/21/2018, vacating and remanding S.D. S. Ct., 2017 S.D. 56 (2017) ; Statement on South Dakota v. Wayfair, Inc., Mass. Dept. of Rev., 06/22/2018
Marketplace Facilitator Laws
10/1/2019
$ 100,000.00
7/1/18
$ 100,000.00
N/A
Gross
Me. Rev. Stat. Ann. 36 § 1951-B(3); South Dakota v. Wayfair, Inc. et al., U.S. Sup. Ct., Dkt. No. 17-494, 06/21/2018, vacating and remanding S.D. S. Ct., 2017 S.D. 56 (2017).
Marketplace Facilitator Laws
10/1/2019
$ 100,000.00
10/1/2018
$ 100,000.00
200
Gross
Md. Regs. Code § 03.06.01.33(B)(5); Maryland Sales & Use Tax Alert, Maryland Comptroller's Office, 07/01/2018; Sales Tax Alert, Maryland Comptroller's Office, 09/14/2018
Marketplace Facilitator Laws
10/1/2019
$ 100,000.00
10/1/17
$100,000.00
N/A
Gross
Mass. Regs. Code 830 CMR 64H.1.7; South Dakota v. Wayfair, Inc. et al., U.S. Sup. Ct., Dkt. No. 17-494, 06/21/2018, vacating and remanding S.D. S. Ct., 2017 S.D. 56 (2017) ; Statement on South Dakota v. Wayfair, Inc., Mass. Dept. of Rev., 06/22/2018
Marketplace Facilitator Laws
10/1/2019
$ 100,000.00
10/1/2018
$100,000.00
200
Gross
Notice to Remote Sllers Regarding Sales Tax and South Dakota v Wayfair, Mich. Dept. Treas., 08/01/2018; State Treasurer: Sales Tax to be Collected from Out-of-State Online Retailers, New State Rule Begins for Sales After Sept. 30, Mich. Dept. Treas., 08/13/2018; Remote Sales Tax Collection in Michigan as a result of South Dakota v. Wayfair, Mich. Dept. Treas., 08/13/2018; Michigan Revenue Administrative Bulletin No. 2018-16, , 08/01/2018
Marketplace Facilitator Laws
1/1/2020
$ 100,000.00
10/1/18
$ 100,000.00
200
Taxable
Minn. Stat. § 297A.66, Subd. 4b(a); Minn. Stat. § 297A.66, Subd. 2(b); Marketplace Providers and Online Retailers, Minn. Dept. Rev., 12/21/2017
Marketplace Facilitator Laws
10/1/2018
$ 100,000.00
9/1/18
$ 250,000.00
N/A
Gross
Miss. Administrative Code § 35.IV.3.09(100); Miss. Administrative Code § 35.IV.3.09(101);Miss. Administrative Code § 35.IV.3.09(103); Supreme Court Ruling, Wayfair, Miss. Dept. Rev., 06/21/2018; South Dakota v. Wayfair, Inc. et al., U.S. Sup. Ct., Dkt. No. 17-494, 06/21/2018, vacating and remanding S.D. S. Ct., 2017 S.D. 56 (2017)
Marketplace Facilitator Laws
7/1/2020
$ 250,000.00
1/1/23
$ 100,000
N/A
Gross
Marketplace Facilitator Laws
1/1/2023
$ 100,000
1/1/2019
$ 100,000.00
200
Gross
Statement from the Nebraska Department of Revenue Regarding the South Dakota v. Wayfair United States Supreme Court Decision, Neb. Dept. of Revenue, 07/27/2018; South Dakota v. Wayfair, Inc. Collection of Sales Tax by Remote Sellers: Frequently Asked Questions, Neb. Dept. of Revenue, 07/27/2018.
Marketplace Facilitator Laws
4/1/2019
$ 100,000.00
10/1/2018
$ 100,000.00
200
Taxable
South Dakota v. Wayfair, Inc. et al., U.S. Sup. Ct., Dkt. No. 17-494, 06/21/2018, vacating and remanding S.D. S. Ct., 2017 S.D. 56 (2017).; Nev. Admin. Code § 372.856
Marketplace Facilitator Laws
10/1/2019
$ 100,000.00
11/1/2018
$ 100,000.00
200
Gross
Notice: Sales and Use Tax Information for Remote Sellers-Effective October 1, 2018, 08/14/2018.
Marketplace Facilitator Laws
11/1/2018
$ 100,000.00
7/1/2019
$ 100,000.00
N/A
Gross
NMSA 1978 § 7-9-3.3
Marketplace Facilitator Laws
7/1/2019
$ 100,000.00
6/21/2018
$ 500,000.00*
100*
Gross
N.Y. Tax Law § 1101(b)(8)(iv); NYCRR 20 § 526.10(a)(4); New York Special Tax Department Notice No. N-19-1, 01/01/2019
Marketplace Facilitator Laws
6/1/2019
$ 500,000.00
11/1/18
$ 100,000.00
200
Gross
N.C. Gen.Stat. § 105-164.8, Directive SD-18-6
Marketplace Facilitator Laws
2/1/2020
$ 100,000.00
1/1/2019
$ 100,000.00
N/A
Gross
N.D. Cent. Code § 57-39.2-02.2; South Dakota v. Wayfair, Inc. et al., U.S. Sup. Ct., Dkt. No. 17-494, 06/21/2018, vacating and remanding S.D. S. Ct., 2017 S.D. 56 (2017).
Marketplace Facilitator Laws
10/1/2019
$ 100,000.00
8/1/2019
$ 100,000.00
200
Gross
Ohio Rev. Code Ann. § 5741.01(I)(2)(g)
Marketplace Facilitator Laws
8/1/2019
$ 100,000.00
7/1/2018
$ 100,000.00
N/A
Aggregate
Okla. Stat. 68 §1392; Okla. Stat. 68 §1391; Okla. Stat. 68 §1393
Marketplace Facilitator Laws
7/1/2018
$ 10,000.00
7/1/19
$ 100,000.00
N/A
Gross
Pa. Stat. Ann. 72 § 7201(m); Pa. Stat. Ann. 72 § 7213.1; Pa. Stat. Ann. 72 § 7213.2; Pa. Stat. Ann. 72 § 7213.3; Pa. Stat.Ann. 72 § 7213.4; No. 2018-01, 01/26/2018
Marketplace Facilitator Laws
7/1/2019
$ 100,000.00
7/7/19
$ 100,000.00
200
Gross
R.I. Gen. Laws § 44-18.2-3(A); R.I. Gen. Laws § 44-18.2-1; Notice: Non-Collecting Retailer Attestation, R.I. Div. of Taxation, Notice 2017-08, 08/04/2017; South Dakota v. Wayfair, Inc. et al., U.S. Sup. Ct., Dkt. No. 17-494, 06/21/2018, vacating and remanding S.D. S. Ct., 2017 S.D. 56 (2017).
Marketplace Facilitator Laws
7/1/2019
$ 100,000.00
11/1/2018
$ 100,000.00
N/A
Gross
S.C. Code Ann. § 12-36-80; S.C. Code Ann. § 12-36-2691; South Carolina Revenue Ruling No. 18-14, , 09/18/2018; South Carolina Revenue Ruling No. 14-4, 09/10/2014
Marketplace Facilitator Laws
4/26/2019
$ 100,000.00
6/21/17
$ 100,000.00
N/A
Gross
South Dakota v. Wayfair, Inc. et al., U.S. Sup. Ct., Dkt. No. 17-494, 06/21/2018, vacating and remanding S.D. S. Ct., 2017 S.D. 56 (2017).
Marketplace Facilitator Laws
3/1/2019
$ 100,000.00
10/1/2019
$ 100,000
N/A
Gross
Tenn. Comp. R. & Regs. § 1320-05-01-.129(2); American Catalog Mailers Association and Net Choice v. Tenn. Dept. of Rev., Tenn. Chancery Ct., Dkt. No. 17-307-IV, 04/102017; L. 2017 Chapter 452 § 2
Marketplace Facilitator Laws
10/1/2020
$ 100,000.00
10/1/2019
$ 500,000.00
N/A
Gross
N/A
Marketplace Facilitator Laws
10/1/2019
$ 500,000.00
1/1/2019
$ 100,000.00
200
Gross
Utah Code Ann. § 59-12-107(2)(c)
Marketplace Facilitator Laws
10/1/2019
$ 100,000.00
7/1/18
$ 100,000.00
200
Gross
Out-Of-State Vendor Provisions,06/27/2018; Vermont VTax Connect Newsletter, Quarter 4, 2015, 11/05/2015; Statement of Vermont Department of Taxes on Vermont Click-Through Nexus Law, 08/01/2015; Vt. Stat. Ann. 32 § 9701(9)(F); Vt. Stat. Ann. 32 § 9701(9)(G); Vt. Stat. Ann. 32 § 9712
Marketplace Facilitator Laws
6/1/2019
$ 100,000.00
7/1/2019
$ 100,000.00
200
Gross
Va. Code Ann. § 58.1-612; Va. Code Ann. § 58.1-612.1
Marketplace Facilitator Laws
7/1/2019
$ 100,000.00
10/1/18
$ 100,000.00
N/A
Gross
Wash. Admin. Code § 458-20-221(2)(b)(ii)
Marketplace Facilitator Laws
7/1/2019
$ 100,000.00
1/1/2019
$ 100,000.00
200
Gross
West Virginia Administrative Notice No. 2018-18, 10/01/2018
Marketplace Facilitator Laws
7/1/2019
$ 100,000.00
10/1/2018
$ 100,000.00
Annual Transaction Threshold
N/A
Gross
Release, Wisconsin Dept. Rev., 07/05/2018
Marketplace Facilitator Laws
1/1/20
$ 100,000.00
2/1/2019
$ 100,000.00
200* (As of July 1, 2024, the transaction threshold will go away)
Gross
Wyo. Stat. § 39-15-501
Marketplace Facilitator Laws
7/1/2019
$ 100,000.00
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Those involved in mergers and acquisitions often get understandably excited about the deal,...
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