Maryland Adopts Economic Nexus Regulation & State-by-State Update

Beginning October 1, 2018, remote-seller vendors with more than $100,000 in sales or at least 200 separate transactions into Maryland must register and collect the sales tax. The Maryland General Assembly’s Joint Committee on Administrative, Executive, and Legislative Review (AELR) approved the Comptroller of Maryland’s emergency regulation requiring remote-seller vendors to start collecting the sales tax beginning October 1, 2018. This emergency regulation will expire on March 30, 2019, at which point it will go through the traditional rulemaking process making it easier for the Comptroller to promulgate a permanent regulation.

Since the U.S. Supreme Court issued its decision in South Dakota v. Wayfair, Inc., many more states have implemented economic nexus standard rules and lawmaking. There are currently 34 states with active or pending economic nexus laws in place with varying economic thresholds. 

Updated below is a list of these states with effective dates and threshold requirements as of August 31, 2018. If your company has NO physical presence in any of the states listed in this table below, AND you have sales to customers in these states, THEN you should consider contacting your tax professional to determine your sales/use tax compliance obligations. 

*Please note that the table above is a summary and can change with state legislation and/or U.S. Congressional action. In addition, this table does not provide the details and complete requirements that need to be considered when determining whether a compliance obligation has been triggered.  

If you think your company has met, in the prior calendar year or 12 months preceding the effective date listed, either of the two economic thresholds (dollars or transactions), or might meet one of those thresholds soon, then you need to consult your tax professional.

If these changes could affect your business, please contact us.

© Copyright 2018 Weaver and Tidwell, L.L.P.