Sales Tax Nexus

As a result of the Supreme Court ruling in South Dakota v. Wayfair, online sellers now need to consider sales tax obligations in state that have a sales tax nexus statute. The precedent set by the 1992 Quill has now been overturned. Now, not only does physical presence count, but “economic” presence in a state creates nexus. Previously you needed to have a physical connection to a state such as being registered in the state, an employee, assets, inventory or representatives located in the state. Now you can have nexus in a state just by having customers in that state.

Here are the current nexus laws and thresholds that require you to collect sales as of July 1, 2018. Note that state laws can change, so contact us if you need to know the most current information.

SALES TAX NEXUS RULES

More information about nexus