More States Eliminating Transaction Counts for Remote Sales Taxes

A growing number of states, responding to complaints that their sales tax requirements for remote retailers are too burdensome, are taking steps to ease that pain.

More states are modifying their economic nexus thresholds—the criteria used to determine whether a remote seller has established an economic connection with the state—by moving away from the requirement for remote sellers to begin collecting and remitting sales tax after reaching a set number of transactions.

Among the states to do so this year is South Dakota, which created a precedent for economic nexus thresholds with its landmark win in South Dakota v. Wayfair ...