Online retailers who do not qualify for the Small Seller Exception (described below) will be required to collect sales tax starting the first day of the calendar quarter that is at least 180 days after the date of the enactment of the Marketplace Fairness Act. On this date sales tax collection will be required on all sales shipped to the 23 states that are "Full Members" of the Streamlined Sales and Use Tax Agreement (SSUTA).
A Full Member State is a state that is in compliance with the Streamlined Sales and Use Tax Agreement through its laws, rules, regulations, and policies.
An Associate Member State is a state that is in compliance with the Streamlined Sales and Use Tax Agreement except that its laws, rules regulations and policies to bring the state into compliance are not in effect but are scheduled to take effect no later than 12 months after becoming an associate member.
To qualify for the Small Seller Exception a retailer must have less than $1,000,000 of total remote sales (in the United States) within the preceding calendar year.
A Remote Sale means a sale of goods or services to customers in a state where a seller does not have adequate physical or economic presence to establish nexus.SSUTA Full Member States:
- New Jersey
- North Carolina
- North Dakota
- Rhode Island
- South Dakota
- West Virginia