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Completely Compliance- Update on Nexus Legislation

by DMA Staff | Jul 03, 2017
Completely Compliance Click-through and Affiliate Nexus Updates
Illinois: An amendment to SB 474 could establish an economic nexus requirement in the state. If passed, effective January 1, 2018, retailers with gross receipts higher than $150,000 to Illinois customers or 200 or more separate transactions will have economic nexus. Determination of nexus can be reviewed on a quarterly basis if requirements have been met for the preceding 12-month period.

Maine: In recognition of the revenue being lost by remote sellers being exempt from collecting sales tax, SP 843 would place the obligation of tax collection on remote sellers. Similar to other states, the threshold is $100,000 in revenue derived from Maine customers in the preceding year or at least 200 separate transactions.

Minnesota: SF 45 will update nexus standards to include language on a “marketplace provider” and provides a nexus threshold of $10,000. Retailers with lesser sales to customers in the state will not be required to register. It also updates the definition of affiliate entity. The Minnesota session has adjourned, so no further action will be taken at this time.

Pennsylvania: The state is joining many others in pushing to require use tax notices. HB 542 will require use tax notifications be sent to all Pennsylvania purchasers by remote sellers. A penalty of $5.00 per notification is assessed for each notice not sent. In addition, specific inclusions to the letter are explained.

Washington: SB 5855 revises many thresholds in the definition of conducting business in the state. A business entity will be considered to have substantial nexus if the entity has more than $53,000 in property, $53,000 in payroll, $267,000 in receipts or 25% of total property, payroll or receipts in the state.

Wisconsin: The Badger State is also proposing use tax notification requirements. SB 259 will require out-of-state businesses with sales exceeding $50,000 to Wisconsin customers to provide itemized statements to each customer. If passed, the bill is effective January 1, 2018.