Kansas’s Sales Tax Economic Nexus Law Explained
Summary: Kansas has passed an economic nexus law, effective July 1, 2021, requiring that all out-of-state sellers and marketplace facilitators register for the collection and remittance of sales and compensating use tax if they have over $100,000 in gross sales during the previous or current calendar year.
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.
Free State Audit Risk Guide
See which states pose the greatest risk to your business.
State-by-State Audit Risk Percentages