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November 2018 Wayfair Impact Update: The Latest State Economic Nexus Changes

by DMA Staff | Dec 05, 2018
November 2018 Wayfair Impact Update: The Latest State Economic Nexus Changes

As expected, there have been several changes to states’ economic nexus requirements since our October blog, as the impact of the Wayfair decision continues across the country.

Nevada implemented its rules on 10/1/2018, but the threshold for reporting will be rolling: “Once a remote seller hits the threshold described above (>$100,000 in sales or 200 or more transactions for delivery into Nevada in the previous or current calendar year), they must register by the first day of the calendar month that begins at least 30 calendar days after they hit the threshold. Sales tax must be collected beginning with sales on that date; but does not need to be collected on sales made prior to that date. For example, if a remote seller has already met the threshold on October 1, 2018, they must register and begin collecting sales tax on sales by November 1, 2018.”

Washington state enacted its thresholds on 10/1/18, of which $100k or 200 transactions must register and remit retail sales tax. Those retailers with sale of $10K up to the above thresholds may either:

  • Register and remit, or
  • Follow the use tax notice and reporting guidelines

November 1, 2018 Effective Dates

New Jersey pushed its implementation date from 10/1/18 to 11/1/18, with the standard 200 transactions / $100k in gross sales threshold.

North Dakota implemented the standard 200 transactions / $100k in gross sales threshold, for sales in 2018, or 60 days after the threshold is met, whichever is later.

South Carolina economic nexus for remote sellers who had economic nexus in 2017, or January 1 – September 30, 2018. Remote sellers who establish economic nexus after November 1st are responsible for remitting the sales and use tax for all taxable sales made into South Carolina beginning the first day of the second calendar month after economic nexus is established.

South Dakota implemented the standard 200 transactions / $100k in gross sales threshold.

Tax Interchange for Retail

December 1, 2018 Effective Dates

Colorado sent notices to retailers currently registered for Retailers Use tax informing them of the de minimis thresholds of 200 transactions or $100,000 in gross transactions and recommending collection and remittance of sales tax, both at the state and home-rule level, with a registration deadline of December 1st, 2018. The CO DOR has stated that they will offer a grace period through March 31, 2019 to comply with the destination sourcing rules to ensure out-of-state retailers have sufficient time to make required systems changes.

Connecticut’s implementation of economic nexus for out-of-state retailers (Conn. Public Act No. 18-152) is 12/1/18. It is important to note that BOTH thresholds OF 200 transactions AND $250,000 in gross receipts must be met.

Other Notable Updates

West Virginia announced that it will implement the 200 transaction / $100K rule as of January 1, 2019. However, the period that economic nexus tests is sales and transactions in calendar year 2018.

California held a hearing on October 24th to discuss future execution of Wayfair-type rules. More to come on this in our next blog.

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