2018 was an exciting, or should we say dismal, year for ecommerce companies and internet sales tax laws. The South Dakota v. Wayfair ruling in June 2018 started a wave of new online sales tax laws that states quickly implemented. This wave has created an absolute mess for ecommerce companies to navigate, and it just continues to get messier. If you are still deep in the mess, or don’t even know what we are talking about, make sure to download our “10 Steps to Ensure Sales Tax Doesn’t Burn Down Your Ecommerce Business”.
This blog is to inform you of 2019 internet sales tax updates. The table below shows states that have had or will have economic nexus laws become effective in 2019. If your business meets thresholds in these states, you are liable to collect and remit sales tax starting on the effective date. Also keep in mind that these are only economic nexus laws. Other laws exist that may also require you to pay sales tax in states (affiliate nexus laws, click-through nexus laws, etc.)
2019 Internet Sales Tax Updates – Economic Nexus Laws
| State | Threshold (revenue and/or number of separate transactions within a state. Based on 12-month period determined by state) | Other requirements or info | Effective Date | Reference and details |
| California | $100K OR 200 transactions | None | 04/01/19 | Click here |
| Georgia | $250K OR 200 transactions | None | 01/01/19 | Click here |
| Iowa | $100K OR 200 transactions | None | 01/01/19 | Click here |
| Louisiana | $100K OR 200 transactions | None | 01/01/19 | Click here |
| Nebraska | $100K OR 200 transactions | None | 01/01/19 | Click here |
| Pennsylvania | $100K | None | 07/01/19 | Click here |
| Texas | $500K | None | 10/01/19 | Click here |
| Utah | $100K OR 200 transactions | None | 01/01/19 | Click here |
| West Virginia | $100K OR 200 transactions | None | 01/01/19 | Click here |
| Wyoming | $100K OR 200 transactions | None | 02/01/19 | Click here |
It is also important to note that in January of this year (2019) New York announced an economic nexus law with a threshold of $300K AND more than 100 transactions. But New York’s effective date is immediately after the Wayfair ruling, which was June 18th, 2018. Therefore, businesses meeting these thresholds may be required to retroactively remit sales tax to the state of New York…this isn’t a joke, but a real thing some states are doing…ridiculous!
Stay Up-to-date
Hopefully these are the end of the 2019 internet sales tax updates for economic nexus. Unfortunately, states are still moving quickly to benefit from internet sales tax laws. Make sure to subscribe to our blog in the sidebar to stay up-to-date on changes, and check out our frequently asked questions about online sales tax.