US economic-nexus monitoring (post-Wayfair)

Description

South Dakota v. Wayfair (2018) replaced the physical-presence test for state sales-tax nexus with an economic-presence test, and within five years every state that levies sales tax had adopted economic-nexus thresholds. The thresholds vary (most states use either $100,000 in revenue or 200 transactions in a calendar or trailing-twelve-month window, but several have dropped the transaction-count side after operational complaints), and the measurement period varies too. The operational pieces are the per-state revenue and transaction tracker that runs against current thresholds, the alerting layer that surfaces an approaching threshold before it crosses, the registration workflow with the state's Department of Revenue, and the collection-and-remittance plumbing that has to apply the correct rate (state plus county plus municipal plus special-district, with thousands of distinct rates nationally) once registration is live. The recurring failure mode is silent threshold crossing; a platform that learns it crossed Pennsylvania's threshold in February but did not register until October owes back-tax on every taxable Pennsylvania sale since February, with interest, and typically without any way to recover the tax from customers who already received a pre-tax invoice. Marketplace-facilitator overlays add another layer because some platforms collect on behalf of their sellers.

Applicability

Applies when: markets include US.

How predicates are evaluated

Required by (1 regulation)

• US Sales Tax (Wayfair)

  South Dakota v. Wayfair (2018) + per-state economic-nexus statutes — typically $100K-$500K revenue OR 200 transactions; rolling-12-month tracking; SSUTA participating states (~24) provide unified registration; marketplace-facilitator framework in ~46 states + DC.

  South Dakota v. Wayfair (2018) + per-state economic-nexus statutes

Fulfilled by (3)

• avalara · full · low effort · $$
• taxjar · full · low effort · $$
• vertex · full · high effort · $$$

ClearLaunch does not accept payment from vendors. Methodology.

Evidence formats

• per-state revenue + transaction dashboard
• registration certificates
• sales-tax returns