More States Ditching Number of Sales as Tax Threshold

Sales transaction thresholds are so 2018.

One of the two key measures that states have been using to collect sales tax from out-of-state vendors—the number of transactions per year—is falling out of favor.

Instead, a growing number of states—including California, Colorado, North Dakota and South Carolina—are saying all that really matters is the money. They’re dropping, or planning to drop, the transactions threshold and only assessing taxes when vendors cross a total sales amount, such as $100,000 into a state.

“I can really see this purely monetary trend continuing,” Jennifer Weidler Karpchuk, senior counsel at Chamberlain Hrdlicka in Philadelphia said. ...