What is Sales Tax Nexus Anyway?

Your business owes sales tax in any state where it has “sales tax nexus”. In short, if you have sales tax nexus you need to collect and remit sales tax. If you don’t have sales tax nexus, you generally don’t need to get a permit. 

Sales tax nexus is a legal term that means you have crossed a threshold and now have a sales tax collection responsibility in the state. Nexus can be created by having a physical presence, economic presence, or by other factors.  Nexus rules vary by state and retailers have specific nexus rules based on where they have people, property or inventory.  

What Should You Do Once You Determine You Have Sales Tax Nexus?

Once you determine that you have sales tax nexus in Wyoming, your next step is to register for a sales tax permit in the state.  Check out our blog post on getting a sales tax permit in Wyoming or more information about that process.

If you are not interested in doing the work of getting the permit yourself, TaxValet can handle the permit registration for you with our Fractional Sales Tax Department Service. 

Common Ways to Have Sales Tax Nexus in Wyoming

1. Economic nexus in Wyoming

If you made $100,000 of sales in Wyoming in the current or prior calendar year, then you are required to register for, collect, and pay sales tax to the state. If you meet this threshold, it does not matter if you have a physical presence in Wyoming.  Nexus has been created based on your volume of sales.For more information see Wyoming HB0019.

On July 1st, 2024, Wyoming enacted H.B. 197, eliminating its 200 transaction count threshold from its economic nexus threshold. Businesses now only have economic nexus if they surpass the state's sales threshold of $100,000.

2. Physical presence nexus in Wyoming

The following creates physical presence nexus in Wyoming. If you have any of the following in Wyoming, you will need to get a sales tax permit:

1. Office – Having or maintaining within Wyoming an office, distribution house, sales house, warehouse or other place of business.
2. Employees – Having any agents operating or soliciting sales or advertising within the state under the authority of the vendor or its subsidiary, regardless of whether the place of business or agent is located in the state permanently or temporarily. Also, having representatives in the state performing warranty repairs creates nexus. 
3. Advertising – Engaging in regular or systematic solicitation by three (3) or more separate transmittances of an advertisement or advertisements in any twelve (12) month period in a consumer market in the state by the distribution of catalogs, periodicals, advertising flyers, or other advertising.
4. Delivery – Delivery in the seller’s vehicle(s).
5. Trade Shows – An out-of-state business that participates as an exhibitor at trade shows in Wyoming and that sells tangible personal property at more than 4 one-time events within a 12-month period must apply for a permanent Wyoming sales/use tax license and must collect use tax on goods used, stored, or consumed in Wyoming.

For more information, please see Title 39-16-101(a)(x).

If you want to get sales tax completely off your plate forever, check out our Fractional Sales Tax Department service for your business.

Uncommon Ways to Have Sales Tax Nexus in Wyoming

1.  Affiliate Nexus in Wyoming

What exactly is affiliate nexus? Affiliate nexus can exist when a business has sufficient contact with a state through a separate business. If your out-of-state business has a relationship with an in-state business, then you may have affiliate nexus. 

Please keep in mind that an “affiliated business” does not necessarily mean that it is a marketing “affiliate” in the typical sense of the word. Instead, “affiliate nexus” refers to the relationship between two businesses.

If you have a subsidiary in Wyoming who meets any of the following requirements, you will need a sales tax permit based on affiliate nexus:

1. Office – Having or maintaining within the state an office, distribution house, sales house, warehouse or other place of business.

2. Employees – Having any agents operating or soliciting sales or advertising within Wyoming under the authority of the vendor or its subsidiary, regardless of whether the place of business or agent is located in the state permanently or temporarily.

For more  information, see Sec 39-16-101(a)(x).

Do You Need a Sales Tax Permit in Wyoming If You Only Sell on Marketplaces?

If you are an out-of-state online retailer who ONLY sells on approved marketplaces (such as Amazon, eBay, etc), Wyoming sales tax will be remitted by the marketplace and you do not need to get a sales tax permit.

For more information about this please see WY Letter Response. 

If you are an e-commerce seller who is unsure of where you need to get a sales tax permit, feel free to check out our Fractional Sales Tax Department service.