Indiana, Utah Could Drop Transaction Counts for Remote Sales Tax

Indiana and Utah could soon join a growing number of states trying to ease the sales tax compliance burden on remote vendors under bills lawmakers are considering.

The bills would amend the economic nexus thresholds—the criteria used to determine whether a remote seller has established an economic connection with the state—by dropping the requirement for retailers to start collecting and remitting sales tax after 200 separate transactions.

Most states rely on a dollar amount to determine sellers’ economic nexus, but nearly half still include transaction counts in their criteria. The transaction count is typically set at 200, following South Dakota’s ...