As South Dakota v. Wayfair rolls on toward 6-years-old, states are still refining their economic nexus requirements. And it’s good news for many e-commerce sellers!
Two states recently announced changes to which businesses have economic nexus.
Indiana
In effect retroactively, on January 1, 2024, Indiana has abolished the 200 transaction threshold.
Now Indiana’s economic nexus rule only applies to any retailer who makes more than $100,000 in the state in the previous or current calendar year.
The state previously required sellers who made more than $100,000 OR more than 200 transactions to register and collect sales tax from buyers in the state.
Wyoming
Beginning July 1, 2024, Wyoming is also abolishing their 200 transaction threshold.
Once this goes into effect, Wyoming’s economic nexus threshold will, like Indiana’s, only apply to retailers who make $100,000 or more in sales in the state in the previous or current calendar year.
Until July 1, the Wyoming economic nexus law still requires that online sellers who make more than $100,000 OR more than 200 transactions in the previous or current calendar year to register and collect sales tax from buyers in the state.
Good News for Many E-Commerce Sellers
Indiana and Wyoming are just the latest states to abolish the transaction threshold. This is good news for e-commerce businesses who sell small ticket items at high-volumes, such as book or t-shirt sellers. With the absence of the 200+ transaction threshold, only businesses that make a large amount of sales in these individual states will be required to register and collect sales tax.
Wondering if these economic nexus changes affect your business? Contact us for a sales tax consultation and find out if you’re off the hook for sales tax as these economic nexus laws continue to evolve.