Wayfair Decission
Tax & Accountingjaneiro 03, 2023

Sales & use tax post-Wayfair decision - marketplace nexus

Marketplace Nexus

This chart indicates whether a state has marketplace nexus provisions.

Note that state nexus statutes are subject to federal constitutional restrictions. However, in South Dakota v. Wayfair, Inc. (Dkt. No. 17-494, June 21, 2018), the U.S. Supreme Court overruled Quill Corp. v. North Dakota (504 U.S. 298 (1992)) and held that physical presence is no longer required to establish sales and use tax nexus. 

STATE COMMENT CITATION
Alabama
MARKETPLACE NEXUS: Yes

Marketplace facilitators with sales into Alabama made through the marketplace of $250,000 or more for the preceding 12 months, must either:

  • register with the Department of Revenue to collect and remit simplified sellers use tax on retail sales made through the marketplace facilitator’s marketplace by or on behalf of a marketplace seller that are delivered in Alabama, whether by the marketplace facilitator or another person, or
  • report such sales to the Department of Revenue and provide customer notifications

We recommend you reference cited authority for more information.

CCH Explanation: Alabama 60-025

Ala. Code §40-23-190

Ala. Code §40-23-191

Ala. Code §40-23-199.2

Ala. Admin. Code r. 810-6-2-.90.04

SSUT Marketplace FAQs
Arizona
MARKETPLACE NEXUS: Yes
Effective Oct. 1, 2019 for marketplace facilitators with gross retail proceeds or income over $100,000 annually.

CCH Explanation: Arizona 60-025
Ariz. Rev. Stat. §42-5043
Arkansas
MARKETPLACE NEXUS: Yes

A marketplace facilitator is required to collect sales tax if, in the previous or current calendar year, it had aggregate sales within the state, or deliveries to locations within the state, exceeding: $100,000; or 200 transactions.

CCH Explanation: Arkansas 60-025

Ark. Code. Ann. §26-52-103

Ark. Code. Ann. §26-53-124

Ark. Code. Ann. §26-53-111
 
California
MARKETPLACE NEXUS: Yes

Applicable October 1, 2019, a marketplace facilitator is considered the seller and retailer for each sale facilitated through its marketplace. Such a facilitator that meets both of the following requirements is the retailer selling or making the sale of tangible personal property sold through its marketplace:

  • the marketplace facilitator is registered or is required to register with the California Department of Tax and Fee Administration (CDTFA); and
  • the marketplace facilitator facilitates a retail sale of property by a marketplace seller. As such, the marketplace facilitator will generally be required to pay sales tax or collect and remit use tax on all retail sales of tangible merchandise for delivery to California purchasers facilitated through its marketplace for marketplace sellers.

We recommend you reference cited authority for more information.

CCH Explanation: California 60-025

Cal. Rev. & Tax. Code §6043
Colorado
MARKETPLACE NEXUS: Yes
Effective Oct. 1, 2019 for marketplace facilitators with retail sales of tangible personal property, commodities, or specified services that exceeded $100,000 in the previous year.

CCH Explanation: Colorado 60-025
Colo. Rev. Stat. §39-26-102
Connecticut
MARKETPLACE NEXUS: Yes

Effective December 1, 2018, a marketplace facilitator will be considered the retailer of each sale the facilitator facilitates on its forum for a marketplace seller. Each marketplace facilitator:

  • must collect and remit tax for each such sale
  • is responsible for all sales and use tax obligations as if such marketplace facilitator was the retailer of such sale; and
  • must keep such records and information as may be required by the Commissioner of Revenue Services to ensure proper tax collection and remittance

We recommend you reference cited authority for more information.

CCH Explanation: Connecticut 60-025

Conn. Gen. Stat. §1 2-407(a)(12) 

Conn. Gen. Stat. §12-408e
District of Columbia
MARKETPLACE NEXUS: Yes

Effective April 1, 2019, for marketplace facilitators with:

  • retail sales of at least $100,000 into DC, or
  • 200 or more separate sales into DC

CCH Explanation: District of Columbia 60-025

D.C. Code Ann. §47-2202,

D.C. Code Ann. §47-3931
Florida
MARKETPLACE NEXUS: Yes, effective July 1, 2021 
Effective July 1, 2021, out-of-state retailers and marketplace providers with no physical presence in Florida are required to collect Florida’s sales and use tax on sales of taxable items delivered to purchasers in Florida if the out-of-state retailer or marketplace provider makes a substantial number of remote sales into Florida. A “substantial number of remote sales” is defined as any number of taxable remote sales in the previous calendar year in which the sum of the sales prices exceeded $100,000.

We recommend you reference cited authority for more information.

CCH Explanation: Florida 60-025
Fla. Stat. §212.0596, 

Fla. Stat. §212.05965
Georgia
MARKETPLACE NEXUS: Yes

Effective April 1, 2020, for marketplace facilitators with sales within Georgia in the prior or current taxable year that exceed $100,000.

CCH Explanation: Georgia 60-025

Ga. Code. Ann. §48-8-2(8)(M.1)-(M.2), (8)(P), Ga. Code. Ann. §48-8-30(c.1)(1)
Hawaii
MARKETPLACE NEXUS: Yes

Effective January 1, 2020, marketplace facilitators are the sellers of tangible personal property, intangible property or services for sales and use tax purposes.

CCH Explanation: Hawaii 60-025

Haw. Rev. Stat. §237-2.5
Idaho
MARKETPLACE NEXUS: Yes

A “marketplace facilitator” must register with the Commission, collect, report, and remit state-level Idaho sales and use tax on sales they facilitate in their marketplace if they meet either set of these criteria:

  • they lack physical presence in Idaho and have over $100,000 in Idaho sales in the previous or current calendar year. In such a case, their own sales and the sales they facilitate are included in the threshold calculation; or
  • they have physical presence in Idaho and have not previously facilitated a retail sale in the state. In such a case, they have 45 days to comply with the registration, collection, and remittance requirements upon completing their first facilitated Idaho retail sale

We recommend you reference cited authority for more information.

Idaho Code §63-3620E
Illinois
MARKETPLACE NEXUS: Yes (effective January 1, 2020)

Effective January 1, 2020, a marketplace facilitator that meets either of the following economic thresholds will be a retailer required to collect and remit sales and use tax:

  • the total revenues from sales by the marketplace facilitator and marketplace sellers are $100,000 or more; or
  • the marketplace facilitator and marketplace sellers enter into 200 or more sales transactions

We recommend you reference cited authority for more information.

CCH Explanation: Illinois 60-025

35 ILCS 105/2d

35 ILCS 110/2d 
Indiana
MARKETPLACE NEXUS: Yes

Effective July 1, 2019, marketplace facilitators are retail merchants when they engage in certain activities for sellers on their marketplace. The marketplace may be physical or on the internet. A marketplace facilitator must register, collect, and remit sales and use tax if it has economic nexus with Indiana and the retailer itself does not have nexus with Indiana.

We recommend you reference cited authority for more information.

CCH Explanation: Indiana 60-025

Ind. Code §6-2.5-1-21.9
Iowa
MARKETPLACE NEXUS: Yes

Marketplaces are required to collect Iowa sales tax on behalf of sellers using the marketplace. A remote seller must collect Iowa sales tax if it sells $100,000 or more in products and/or services.

CCH Explanation: Iowa 60-025

Iowa Code §423.14A
Kansas
MARKETPLACE NEXUS: Yes
A marketplace facilitator with annual gross receipts from sales sourced to Kansas in excess of $100,000, must collect and remit sales tax. Any marketplace facilitator who meets the $100,000 threshold for the first time in the current calendar year must collect tax on cumulative gross receipts from sales into the state in excess of $100,000 during the current calendar year. 

CCH Explanation: Kansas 60-025
AGO 2019-08, Uncodified Sec. 2, S.B. 50, Laws 2021 
Kentucky
MARKETPLACE NEXUS:

Effective July 1, 2019, for marketplace facilitators with:

  • retail sales of at least $100,000 into KY, or
  • 200 or more separate sales into KY

CCH Explanation: Kentucky 60-025

Ky. Rev. Stat. Ann. §139.340

Ky. Rev. Stat. Ann. §139.450
Louisiana
MARKETPLACE NEXUS: No
Remote sellers selling through a marketplace or similar arrangement may register and voluntarily collect.

CCH Explanation: Louisiana 60-025

Maine
MARKETPLACE NEXUS: Yes
CCH Explanation: Maine 60-025 Me. Rev. Stat. Ann. tit. 36, §1951-C
Maryland
MARKETPLACE NEXUS: Yes

CCH Explanation: Maryland 60-025

Md. Code Ann. 11-403.1
Massachusetts
MARKETPLACE NEXUS: Yes
Effective October 1, 2019, for marketplace facilitators with sales within Massachusetts in the prior or current taxable year that exceed $100,000.

CCH Explanation: Massachusetts 60-025
Mass Regs. Code tit. 830, §64H.1.7
Michigan
MARKETPLACE NEXUS: Yes
CCH Explanation: Michigan 60-025 Mich. Comp. Laws §205.52d
Minnesota
MARKETPLACE NEXUS: Yes

Remote marketplace providers must collect and remit tax if, over the prior 12-month period, they make either:

  • 200 or more retail sales shipped to Minnesota; or
  • $100,000 or more in retail sales shipped to Minnesota

We recommend you reference cited authority for more information.

CCH Explanation: Minnesota 60-025

Minn. Stat. §297A.66, Remote Seller FAQ 
Mississippi
MARKETPLACE NEXUS: Yes
Effective July 1, 2020, a "person doing business in this state," who is consequently required to collect and remit sales or use tax, includes any marketplace facilitator, marketplace seller, or remote seller with sales that exceed $250,000 in any consecutive 12-month period.

We recommend you reference cited authority for more information.

CCH Explanation: Mississippi 60-025
Miss. Code. Ann. §27-67-3 
Missouri
MARKETPLACE NEXUS: Yes (effective January 1, 2023)  
Effective January 1, 2023, marketplace facilitators that engage in business activities within Missouri must register with the Department of Revenue to collect and remit use tax on sales delivered into Missouri through the marketplace facilitator's marketplace by or on behalf of a marketplace seller. Such retail sales include those made directly by the marketplace facilitator as well as those made by marketplace sellers through the marketplace facilitator's marketplace. 

We recommend you reference cited authority for more information.

CCH Explanation: Missouri 60-025
Mo. Rev. Stat. §144.752 
Nebraska
MARKETPLACE NEXUS: Yes
Multivendor marketplace platforms with over $100,000 in sales or 200 or more transactions in the state annually, must collect tax.

CCH Explanation: Nebraska 60-025
Neb. Rev. Stat. §77-2701.13
Nevada
MARKETPLACE NEXUS: Yes

Effective October 1, 2019, for marketplace facilitators with:

  • cumulative gross receipts exceeding $100,000 from retail sales in Nevada, or;
  • at least 200 separate retail sales transactions in Nevada in the current or preceding calendar year

CCH Explanation: Nevada 60-025

Nev. Rev. Stat. §372.105

Nev. Rev. Stat. §374.110

Nev. Rev. Stat. §377.040

Reg. No. R189-18
New Jersey
MARKETPLACE NEXUS: Yes

Sales tax collection is required in New Jersey if, during the current or prior calendar year, a remote seller exceeds:  

  • $100,000 in gross revenue from delivery of tangible personal property, specific digital products, or services into New Jersey; or  
  • 200 or more separate transactions in New Jersey.   

We recommend you reference cited authority for more information. 

CCH Explanation: New Jersey 60-025

New Jersey Division of Taxation, N.J. Stat. Ann. §54:32B-3.5, TB-83  
New Mexico
MARKETPLACE NEXUS: Yes
A person or marketplace provider is doing business in New Mexico if they have gross receipts from sales in New Mexico of $100,000 or more. As part of the economic nexus rules, gross receipts subject to the tax includes receipts collected by a marketplace provider from sales, leases and licenses of tangible personal property; and sales of licenses and sales of services or licenses for use of real property that are sourced to New Mexico. 

CCH Explanation: New Mexico 60-025
N.M. Stat. Ann. §7-9-4

 

New York
MARKETPLACE NEXUS:

A business that has no physical presence in New York, but meets the following requirements in the immediately preceding four sales tax quarters, is required to register and collect/remit sales tax:  

  • makes more than $500,000 in sales of tangible personal property delivered in New York, and  
  • makes more than 100 sales of tangible personal property delivered in New York.  

We recommend you reference cited authority for more information.

CCH Explanation: New York 60-025

N.Y. Tax Law, §1101(b)(8)(i)(E)

N.Y. Tax Law, §1101(b)(8)(iv)

Important Notice N-19-1 
North Carolina
MARKETPLACE NEXUS: Yes
A remote seller is required to register, and collect and remit North Carolina sales and use tax if, in the previous or current calendar year, the retailer had one or more of the following: (1) the remote seller has gross sales in excess of $100,000 sourced to North Carolina; or (2) the remote seller has 200 or more separate transactions sourced to North Carolina (“threshold”). 
 
We recommend you reference cited authority for more information.  

CCH Explanation: North Carolina 60-025
N.C. Gen. Stat. §105-164.8, Directive SD-18-6
North Dakota
MARKETPLACE NEXUS: Yes

Out-of-state sellers with no physical presence in North Dakota are subject to sales and use tax if, in the previous calendar year or the current calendar year the seller's gross sales from the sale of tangible personal property and other taxable items delivered in North Dakota exceed $100,000. 

Such a seller is required to remit sales or use tax and must follow all applicable procedures and requirements as if the seller has a physical presence in North Dakota.  
 
Remote sellers must register and begin collecting North Dakota sales and use tax on the earlier of: 

  • 60 days after meeting the threshold, or 
  • the following calendar year. 

NOTE: Previously, North Dakota had a 200 or more separate transactions threshold, too. It was eliminated retroactively to tax years beginning on or after January 1, 2019. 
 
Effective October 1, 2019, a marketplace facilitator meeting the $100,000 in sales threshold is required to collect tax on sales of property and services delivered into North Dakota, which are made by a marketplace seller through the marketplace facilitator. 
 
We recommend you reference cited authority for more information.

CCH Explanation: North Dakota 60-025

N.D. Cent. Code §57-39.2-02.2

N.D. Cent. Code §57-40.2-02.3

N.D. Cent. Code §57-39.2-02.3

N.D. Cent. Code §57-40.2-02.4
Ohio
MARKETPLACE NEXUS: Yes
A seller or marketplace facilitator has substantial nexus if, in the current or preceding calendar year, it (i) has gross receipts exceeding $100,000 from sales into Ohio, or (ii) engages in 200 or more separate sales transactions in Ohio. 
 
We recommend you reference cited authority for more information.

CCH Explanation: Ohio 60-025
Ohio Rev. Code Ann. §5741.01
Oklahoma
MARKETPLACE NEXUS: Yes

Remote sellers: By July 1, 2018, and by June 1 of each calendar year starting in 2019, a “remote seller” who had at least $10,000 ($100,000 effective November 1, 2019) in aggregate Oklahoma sales in the preceding 12-calendar-month period must file an election with the Oklahoma Tax Commission to: 

  • collect and remit sales and use tax due on tangible personal property and obtain a sales tax permit, or 
  • through October 31, 2019, comply with notice and reporting requirements. The notice and reporting option is no longer available to remote sellers effective November 1, 2019. 

Marketplace facilitators and referrers: By July 1, 2018, and by June 1 of each calendar year starting in 2019, a “remote seller,” “marketplace facilitator,” or “referrer” who had at least $10,000 in aggregate Oklahoma sales in the preceding 12-calendar-month period must file an election with the Oklahoma Tax Commission to: 

  • collect and remit sales and use tax due on tangible personal property and obtain a sales tax permit, or 
  • comply with notice and reporting requirements.  

CCH Explanation: Oklahoma 60-025

Okla. Stat. tit. 68, §1392
Pennsylvania
MARKETPLACE NEXUS: Yes

A marketplace facilitator that meets the $100,000 economic nexus threshold must collect tax on all Pennsylvania sales. This applies even if the sale is on behalf of a marketplace seller that does not have any nexus with Pennsylvania.

CCH Explanation: Pennsylvania 60-025

72 P.S. §7213.1(a)

72 P.S. §7201(b)(3.5)

Sales and Use Tax Bulletin 2019-01
Uncodified Sec. 33, Act 13 (H.B. 262), Laws 2019

 

Rhode Island
MARKETPLACE NEXUS: Yes
CCH Explanation: Rhode Island 60-025
R.I. Gen. Laws §44-18.2-3
South Carolina
MARKETPLACE NEXUS: Yes
Economic nexus occurs when gross sales into South Carolina are more than $100,000 in this or the last calendar year.

CCH Explanation: South Carolina 60-025
S.C. Code Ann. §12-36-1340
South Dakota
MARKETPLACE NEXUS: Yes

Effective March 1, 2019, for marketplace facilitators with:

  • $100,000 or more in gross sales in South Dakota; or
  • at least 200 separate retail sales transactions in Nevada in the current or preceding calendar year

CCH Explanation: South Dakota 60-025

S.D. Codified Laws §10-45-2
Tennessee
MARKETPLACE NEXUS: Yes

Effective October 1, 2020, a marketplace facilitator who made or facilitated total sales to consumers in Tennessee that exceeded $100,000 during the previous 12-month period must collect and remit sales or use taxes.

We recommend you reference cited authority for more information.

CCH Explanation: Tennessee 60-025

Tenn. Code. Ann. §67-6-501

Tenn. Code. Ann. §67-6-102

Tenn. Code. Ann. §67-6-501
Texas
MARKETPLACE NEXUS: Yes

Effective October 1, 2019, for marketplace providers with $500,000 or more in gross revenue from sales into Texas.

CCH Explanation: Texas 60-025

34 Tex. Admin. Code §3.286
Utah
MARKETPLACE NEXUS: Yes

Marketplace facilitators are required to collect tax if, in the previous or current calendar year, the marketplace facilitator makes sales on behalf of or facilitates sales on behalf of one or more marketplace sellers that:

  • have more than $100,000 in gross revenue in the state or
  • make at least 200 separate transactions in the state

We recommend you reference cited authority for more information.

CCH Explanation: Utah 60-025

Utah Code Ann. §59-12-102

Utah Code Ann. §59-12-107.6
Vermont
MARKETPLACE NEXUS: Yes

Effective June 1, 2019, the definition of "vendor" is expanded to include:

  • a marketplace facilitator who has facilitated sales by marketplace sellers to destinations within Vermont of at least $100,000, or totaling at least 200 individual sales transactions, during any 12-month period preceding the monthly period with respect to which that person's sales and use tax liability is determined; and
  • a marketplace seller who has combined sales to a destination within Vermont and sales through a marketplace to a destination within Vermont of at least $100,000, or totaling at least 200 individual sales transactions, during any 12-month period preceding the monthly period with respect to which that person's sales and use tax liability is determined

Moreover, the definition of "persons required to collect tax" also is expanded to include marketplace facilitators with respect to retail sales made on behalf of a marketplace seller.

We recommend you reference cited authority for more information.

CCH Explanation: Vermont 60-025

Vt. Stat. Ann. tit. 32, §9701

Vt. Stat. Ann. tit. 32, §9713
Virginia
MARKETPLACE NEXUS: Yes

Marketplace facilitators are required to register, collect and remit retail sales and use tax if the facilitator engages in certain activities on a marketplace platform and exceeds the state's economic threshold. The economic threshold is:

  • more than $100,000 in annual gross revenue from sales in Virginia; or
  • at least 200 sales transactions in Virginia

We recommend you reference cited authority for more information.

CCH Explanation: Virginia 60-025

Va. Code Ann. §58.1-612

Guidelines for Remote Sellers and Marketplace Facilitators
Washington
MARKETPLACE NEXUS: Yes
Marketplace facilitators with more than $100,000 in cumulative gross receipts in Washington in the current or prior calendar year are required to collect tax.

CCH Explanation: Washington 60-025
Wash. Rev. Code §82.08.0531
West Virginia
MARKETPLACE NEXUS: Yes

Collection requirements are applicable to sales by marketplace facilitators or referrers made on and after July 1, 2019. A marketplace facilitator, referrer, or remote seller is required to collect sales and use tax when:

  • the marketplace facilitator, referrer, or remote seller makes or facilitates West Virginia sales on its own behalf or on behalf of one or more marketplace sellers equal to or exceeding $100,000 in gross revenue for an immediately preceding or current calendar year; or
  • the marketplace facilitator, referrer, or remote seller makes or facilitates West Virginia sales on its own behalf or on behalf of one or more marketplace sellers in 200 or more separate transactions for an immediately preceding or current calendar year.

We recommend you reference cited authority for more information.

CCH Explanation: West Virginia

W. Va. Code §11-15A-6b
Wisconsin
MARKETPLACE NEXUS: Yes
Effective January 1, 2020, a marketplace provider is liable for the tax imposed on the entire sales price charged to the purchaser, including any amount charged by the marketplace provider for facilitating the sale, from the sale, license, lease or rental of tangible personal property, or items, property, or goods or services.

CCH Explanation: Wisconsin 60-025
Wis. Stat. §77.51(13gm)
Wyoming
MARKETPLACE NEXUS: Yes

Marketplace facilitators are subject to the economic nexus thresholds:

  • over $100,000 in sales to Wyoming; or
  • 200 or more transactions in the current or prior calendar year

Remote sellers with over $100,000 in sales to Wyoming or 200 or more transactions in the current or prior calendar year, have nexus.

We recommend you reference cited authority for more information.

CCH Explanation: Wyoming 60-025

Wyo. Stat. Ann. §39-15-501 
Source: Wolters Kluwer CCH® AnswerConnect, 2022
Permission for use granted.
Carol Kokins-Graves
Senior Content Management Analyst

Carol Kokinis-Graves, an attorney, is a senior content management analyst in the Indirect Tax Group at Wolters Kluwer Tax & Accounting. She has spent more than 23 years analyzing and reporting state and local sales and use tax legislation, court cases, department of revenue rulings, and regulations. Carol is a speaker on state and local tax issues and has been quoted in top media publications, including Forbes, NBC News, The Los Angeles Times, and USA Today.

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