Kansas’s Economic Nexus Law Explained

Determined to finally get off the dollar menu*, Kansas has now signed an economic nexus law that becomes effective July 1, 2021. The law, passed by the Kansas legislature after overcoming a veto by the governor, requires out-of-state sellers and marketplace facilitators to collect and remit sales and use tax for transactions taking place in the state of Kansas, no matter the retailer’s physical location.

Here are more details regarding Kansas’s economic nexus threshold:

1. All businesses that made gross sales via mail, telephone, internet, or other communication methods for the previous or current calendar year in which the sum of gross receipts exceeded $100,000, meet the requirements and must register and remit sales and compensating use tax.

2. While many states have established both a dollar threshold and a transaction threshold, Kansas’s economic law only looks at dollar sales.

3. All gross sales, including marketplace transactions and wholesale/resale transactions, should be reviewed to determine if the seller has met the $100,000 threshold.

4. Kansas’s economic nexus law becomes effective July 1, 2021.

 

You Can Find More Information Regarding Kansas’s Economic Nexus Law On The Following Page:

• Kansas’s Senate Bill 50 Summary
• How to Register for a Sales Tax Permit in Kansas
• How to File and Pay Sales Tax in Kansas
• Economic Thresholds by State

 

* Previous to this legislation Kansas had a threshold of only $1.

 

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Disclaimer: Our attorney wanted you to know that no financial, tax, legal advice or opinion is given through this post. All information provided is general in nature and may not apply to your specific situation and is intended for informational and educational purposes only. Information is provided “as is” and without warranty.