Nevada Establishes Economic Nexus Thresholds

Like so many other states, Nevada has established an economic nexus threshold following the U.S. Supreme Court’s Wayfair decision.  The Supreme Court previously ruled that an out-of-state seller’s liability to collect and remit the tax to the consumer’s state depended on whether the seller had a physical presence in that state, but that mere shipment of goods into the consumer’s state, did not satisfy the physical presence requirement.  However, that physical presence requirement is null and void following Wayfair.

Although Nevada has not yet determined the effective date to begin enforcing the sales and use tax economic thresholds, they did provide qualifying factors for remote sellers.  A remote seller has economic nexus with the state if, during the current or prior calendar year, gross revenue from sales of property or services into Nevada is more than $100,000 or property or services are sold into the state 200 or more times.  When the new rule goes into effect, remote sellers must begin collecting on the first day of the first month that begins at least 30 days after the threshold is met.

Remote sellers who conduct business in Nevada may be affected by this new rule once it is implemented.  To register to collect and remit sales tax in Nevada, you may do so online via the Nevada Tax Center or the Streamlined Sales Tax Registration System.  A qualified tax attorney can assist with the execution of the application and potential questions or concerns that may arise in the process.

Jeanette Moffa is an attorney who concentrates on state and local taxes at Moffa, Sutton, & Donnini, P.A. She is also an adjunct professor and assistant editor to the American Bar Association’s The Sales and Use Tax Deskbook. For more information please call us at 888-966-8216.