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Tax Trap: Is Your Business Collecting Sales Tax for Sales In Other States?

The June 2018 Wayfair Supreme Court decision allows states to require out-of-state businesses without a physical presence in a state to collect sales tax if they have economic nexus to a state.

 Around 37 states (out of the 45 states with a sales tax) have adopted economic nexus rules.

 California’s rules are effective April 1, 2019 and I will post these rules later this month.


Many states require sales tax collection if in current or prior year:

(a)   Sales over $100,000 in state

(b)   Over 200 transactions in state (including nontaxable transactions)

Certain states have said they will start enforcing this law as of January 2019.

If you are enjoying my tax and finance tips and would like to buy me a beverage

Richard Pon CPA, CFP