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Which states charge a fee to register for a sales tax permit?

by TaxJar February 1, 2024

Please note: This blog was originally published in 2020. It’s since been updated for accuracy and comprehensiveness.

Registering for a sales tax permit is free in the majority of states. However, in other states, it costs a small fee.

States that charge a fee to register for a sales tax permit

That said, not all states are free to register. Some have a small fee, and a couple are pretty pricy. Here are the states that require a registration fee.

Arizona – The state charges $12 to file for a transaction privilege tax (TPT) permit (which is like a sales tax permit in Arizona.) You may also be required to register in individual local areas which may cost a small fee. (Don’t worry – most starts are not as complex as Arizona!) Arizona charges the city fees if you have physical nexus. in the state.

Colorado – It costs $63 to apply for a Colorado sales tax permit. Permits must also be renewed every two years.

Connecticut – There’s an application fee of $100 to apply.

Florida – There is a $5 fee only if you elect to register by paper. Registering online is free.

Hawaii – Hawaii charges a $20 fee to register for a General Excise Tax (GET) permit.

Indiana – There is a $26 registration fee to register a business in Indiana.

Nevada – To apply for a sales tax permit in Nevada, taxpayers are asked if they meet one or both economic nexus thresholds (more than $100k sales or 200+ transactions). If you reply “Yes” to any of these questions, the “Certificate of Authority” option is not given; instead, you must apply for a “Sales Permit” automatically, which requires:

• A $15 registration fee
• A security deposit if your estimated monthly taxable sales are above $1,500 (Around $18K annually)

The security deposit is held for a minimum of three years and is not applied to current year taxes. If you have good filing history after the three year period, you can send in a request to have it refunded at that time. The security deposit is calculated as follows:

• If annual taxable sales are less than or equal to $18k, no security deposit is required
• If annual taxable sales are greater than $18K, but less than or equal to $120k (quarterly filer)= monthly taxable sales x highest county rate (8.375%)x3x2
• If annual sales are greater than $120k (monthly filer) = monthly taxable sales x highest county rate (8.375%) x 3

If you reply “No” to both questions, the state will populate a third question, letting you know you can apply for a certificate of authority. In that scenario, no fee or security deposit is required.

Rhode Island – It costs $10 to register for a Rhode Island sales tax permit.

South Carolina – It costs $50 to register for a South Carolina sales tax permit.

Washington – It costs $90 to register for a Washington sales tax permit.

West Virginia – It costs $30 to register for a West Virginia sales tax permit.

Wisconsin – It costs $20 to register for a Wisconsin sales tax permit.

Wyoming – There is a one time license fee of $60 to register for a Wyoming sales tax permit.

There’s one other important caveat when it comes to registering for a sales tax permit and paying fees. Depending on your business relationship with the state, you may be required to register your business for other state activities aside from sales tax. For example, if you have income tax nexus in the state then you may be required to register with the Secretary of State in that state. Or if you have employees in that state, you may be required to register with that state’s Department of Labor. This blog post doesn’t cover those types of fees. If you think you may need to register for more than just a sales tax permit in a state, we recommend a couple of things:

• Consult a tax accountant
• Give the state a call – here’s a list of telephone numbers for every state’s department of revenue (or equivalent) 

How TaxJar can help

Don’t want to worry about these state specific details? TaxJar can manage your sales tax registrations on your behalf. Simply fill out this form, and TaxJar can register your business for a sales tax permit in the states where you have sales tax requirements.

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