Actually that’s not the case any longer. It got changed back in 2018 with the Supreme Court ruling on South Dakota vs Wayfair. Nexus went away and most states have set threshold of dollar amount / number of transactions. It’s gotten very complicated to figure out
Changes in Internet Sales Tax Rates by State 2022
Internet Sales Tax Rates were a product of the 2018 Supreme Court Wayfair ruling. It required out-of-state sellers to collect sales taxes from their in-state consumers. Three years since the mandate and with the COVID-19 pandemic happening, the 2018 ruling is getting amended to accommodate the fairness for small online businesses.
The changes focus on abolishing the economic nexus imposed on all online sellers. This development means that small retailers are no longer required to pay sales taxes based on the number of units they sell. Instead, sales tax is required when sales exceed the amount threshold.
Economic Nexus Legislation
As mentioned earlier, in June 2018, the Supreme Court ruled in favor of the state in South Dakota v. Wayfair, Inc. The new law allowed South Dakota to impose sales taxes on remote purchases. Before South Dakota v. Wayfair, the state could only enforce tax collection on businesses with a physical location in the state. This law includes brick-and-mortar establishments as well as remote workers.
