Maryland Adopts Economic Nexus Regulation & State-by-State Update

Beginning October 1, 2018, remote-seller vendors with more than $100,000 in sales or at least 200 separate transactions into Maryland must register and collect the sales tax. The Maryland General Assembly’s Joint Committee on Administrative, Executive, and Legislative Review (AELR) approved the Comptroller of Maryland’s emergency regulation requiring remote-seller vendors to start collecting the sales tax beginning October 1, 2018. This emergency regulation will expire on March 30, 2019, at which point it will go through the traditional rulemaking process making it easier for the Comptroller to promulgate a permanent regulation.

 

Since the U.S. Supreme Court issued its decision in South Dakota v. Wayfair, Inc., many more states have implemented economic nexus standard rules and lawmaking. There are currently 34 states with active or pending economic nexus laws in place with varying economic thresholds. 

 

Updated below is a list of these states with effective dates and threshold requirements as of August 31, 2018. If your company has NO physical presence in any of the states listed in this table below, AND you have sales to customers in these states, THEN you should consider contacting your tax professional to determine your sales/use tax compliance obligations. 

 

State	Remote Seller Threshold	Effective Date
Alabama	$250,000	10/1/2018
Connecticut	$250,000 and 200 Transactions	12/1/2018
Georgia	$250,000 or 200 Transactions	1/1/2019
Hawaii	$100,000 or 200 Transactions	7/1/2018
Idaho	Commission Agreement and $10,000	7/1/2018
Illinois	$100,000 or 200 Transactions	10/1/2018
Indiana	$100,000 or 200 Transactions	10/1/2018
Iowa	$100,000 or 200 Transactions	1/1/2019
Kentucky	$100,000 or 200 Transactions	7/1/2018
Louisiana	$100,000 or 200 Transactions	Taxable Periods Beginning after January 1, 2019
Maine	$100,000 or 200 Transactions	7/1/2018
Maryland	$100,000 or 200 Transactions	10/1/2018
Massachusetts	$500,000 and 100 Transactions	10/1/2017
Michigan	$100,000 or 200 Transactions	10/1/2018
Minnesota	100 Transactions or 10 Sales Totaling More Than $100,000	No later than 10/1/2018
Mississippi	$250,000	9/1/2018
Nebraska	$100,000 or 200 Transactions	1/1/2019
Nevada	Proposed $100,000 or 200 Retail Sales	Active; No Enforcement Date for Economic Nexus Threshold has Been Announced
New Jersey	$100,000 or 200 Transactions	10/1/2018
New York	$300,000 and 100 Transactions	Active
North Carolina	$100,000 or 200 Transactions	11/1/2018
North Dakota	$100,000 or 200 Transactions	10/1/2018
Ohio	$500,000	1/1/2018
Oklahoma	$10,000	7/1/2018
Pennsylvania	$10,000	3/1/2018
Rhode Island	$100,000 or 200 Transactions	8/17/2017
South Carolina	$250,000	9/1/2018
South Dakota	$100,000 or 200 Transactions	Enforcement Currently Prohibited Under Injunction
Tennessee	$500,000	Enforcement on hold pending litigation
Utah	More Than $100,000 or 200 Transactions	1/1/2019
Vermont	$100,000 or 200 Transactions	7/1/2018
Washington	Marketplace Fairness Threshold – $10,000 Economic Nexus Threshold – $100,000 or 200 Transactions	Marketplace Fairness Threshold – January 1, 2018 Economic Nexus Threshold- October 1, 2018
Wisconsin	$100,000 or 200 Transactions	10/1/2018
Wyoming	$100,000 or 200 Transactions	Pending Court Rulings, Estimated date of 1/1/2019

 

*Please note that the table above is a summary and can change with state legislation and/or U.S. Congressional action. In addition, this table does not provide the details and complete requirements that need to be considered when determining whether a compliance obligation has been triggered.  

 

If you think your company has met, in the prior calendar year or 12 months preceding the effective date listed, either of the two economic thresholds (dollars or transactions), or might meet one of those thresholds soon, then you need to consult your tax professional.

 

If these changes could affect your business, please contact us.

 

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