Wisconsin removes transaction threshold for nexus
by October 28, 2023
Please note: This blog was originally published in 2021. It’s since been updated for accuracy and comprehensiveness.
Back in 2018, Wisconsin fell in line with other states enacting their own economic nexus laws and thresholds. Remote sellers who conducted 200 transactions in the state or generated sales tax exceeding $100,000 were required to collect and remit sales tax in Wisconsin. That all changed in February 2021 when Wisconsin removed the transaction threshold from their economic nexus requirements.
As of February 2021, the following sellers required to collect and remit sales tax in the state of Wisconsin:
- Sellers with a physical presence in Wisconsin who sell property or provide taxable services in the state
- Sellers with no physical presence in Wisconsin but have gross sales tax exceed $100,000 in the state in the current or previous calendar year.
Wisconsin isn’t the only state dropping their transaction threshold. We’re seeing a trend of states nixing the transaction threshold to allow for some fairness for small sellers. Here’s an example to help illustrate how it impacts those small sellers.
Bob’s Stickers sells 200 stickers for 25 cents each. Under certain state’s transaction requirements, they would have economic nexus, even though they’d only sold $50 worth of merchandise. These economic nexus laws were set up with larger sellers in mind, and now some states are rethinking how they impact smaller sellers Maine passed a similar law eliminating their 200 transaction threshold for remote sellers as well.
For more information on this, you can view the 2021 Wisconsin Act 1 or the information on the Wisconsin Department of Revenue website.
