North Dakota – North Dakota Eliminates Remote Seller Transactions Threshold

North Dakota has eliminated the transactions threshold from its remote seller law.

Under S.B. 2191, signed into law March 14 by Gov. Doug Burgum (R), a remote seller without a physical presence in North Dakota is required to collect and remit taxes on sales made into the state once the seller’s gross sales in the state exceed $100,000. The new law also requires a seller to obtain a permit during the following calendar year or 60 days after the threshold is met, whichever is earlier. The law is retroactive to tax years beginning on or after January 1, 2019. 

Under prior law, a seller was required to collect and remit sales taxes once it reached the $100,000 threshold or a 200-transactions threshold. The amended law aligns with the general consensus among states and industry leaders participating in a Multistate Tax Commission work group, most of whom have said they would prefer a sales-volume-only threshold for establishing economic nexus.

For The Full Story: Taxnotes

by aaron davis
march 22, 2019