Internet sales tax is a tax that is levied on all internet-based services. Internet access taxes normally take the form of taxation on Internet service provider (ISP) access charges. ISPs levy these charges on users. At present, these charges are basically executed at the state level. There is no national tax on ISP user charges.

It is important to state that there is no uniform description of Internet access tax; they fall within the category of sales taxes in some states, and telecommunications taxes in others; and they are considered service charges, which are usually exempt from taxation in still other states.

If you run an internet – based business in the United States, especially businesses that involve selling on the Internet to states around the country, then you should be aware that states have enacted laws requiring the collection of sales taxes by online sellers. In order for a given state to require you to collect sales tax, that state must pass a law allowing it to do so.

On June 21, 2018, the United States Supreme Court fundamentally changed the rules for collection of sales tax by Internet-based retailers. In its decision in South Dakota v. Wayfair Inc., the Court effectively stated that individual states can require online sellers to collect state sales tax on their sales. This ruling overturned the Court’s 1992 decision in Quill Corporation v. North Dakota. The Quill case prohibited states from requiring a business to collect sales tax unless the business had a physical presence in the state.

Interestingly, a several states already have enacted new laws and these laws refer to online sellers as “remote sellers.” In most cases, if a remote seller has either:

  • A minimum number of separate sales to customers in the state; or
  • A minimum dollar amount of sales to customers in the state,

the law requires the seller to collect and pay sales tax. In addition, the seller must register with the state’s taxing authority.

The following states do not have an Internet sales tax:

  • Alaska
  • Delaware
  • New Hampshire
  • Montana
  • Oregon

These are the states in the United States and their internet sales tax status;

Alabama

Alabama is one of the states that has internet sales tax.

  • Internet Sales Tax Start Date – October 1, 2018
  • Minimum Sales Thresholds – $250,000

Alaska          

Alaska happens to be among the states that don’t have internet sales tax

Arizona

Arizona does not have internet sales tax.

Arkansas       

Arkansas has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – Jan. 1, 2019
  • Minimum Sales Thresholds – $100,000 or 200 transactions

California    

California has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – April 1, 2019
  • Minimum Sales Thresholds – $100,000 or 200 transactions

Colorado     

Colorado has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – Dec. 1, 2018
  • Minimum Sales Thresholds – $100,000 or 200 transactions

Connecticut

Connecticut has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – Dec. 1, 2018
  • Minimum Sales Thresholds – $250,000 or 200 transactions

Delaware

Delaware happens to be among the states that is yet to inaugurate legislature that supports the collection of internet sales tax.

District of Columbia         

District of Columbia has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – Proposed
  • Minimum Sales Thresholds – $100,000 or 200 transactions

Florida

Florida is also another state that does not have internet sales tax.

Georgia

Georgia has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – Jan. 1, 2019
  • Minimum Sales Thresholds – $250,000 or 200 transactions

Hawaii          

Hawaii has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – 1, 2017
  • Minimum Sales Thresholds – $100,000 or 200 transactions

Idaho

Idaho has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – July 1, 2018
  • Minimum Sales Thresholds – $10,000

Illinois          

Illinois has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – Oct. 1, 2018
  • Minimum Sales Thresholds – $100,000 or 200 transactions

Indiana          

Indiana has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – Oct. 1, 2018
  • Minimum Sales Thresholds – $100,000 or 200 transactions

Iowa

Iowa has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – Jan. 1, 2019
  • Minimum Sales Thresholds – $100,000 or 200 transactions

Kansas          

Kansas is yet to pass into law internet sales tax.

Kentucky

Kentucky has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – Oct. 1, 2018
  • Minimum Sales Thresholds – $100,000 or 200 transactions

Louisiana

Louisiana has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – Jan. 1, 2019
  • Minimum Sales Thresholds – $100,000 or 200 transactions

Maine           

Maine has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – July 1, 2018
  • Minimum Sales Thresholds – $100,000 or 200 transactions

Maryland

Maryland has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – Oct. 1, 2018
  • Minimum Sales Thresholds – $100,000 or 200 transactions

Massachusetts

Massachusetts has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – Oct. 1, 2018
  • Minimum Sales Thresholds – $500,000 or 100 transactions

Michigan      

Michigan has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – Oct. 1, 2018
  • Minimum Sales Thresholds – $100,000 or 200 transactions

Minnesota

Minnesota has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – Oct. 1, 2018
  • Minimum Sales Thresholds – 10 retail transaction totaling $100,000 or 100 retail transaction

Mississippi

Mississippi has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – Sept. 1, 2018
  • Minimum Sales Thresholds – $250,000

Missouri        

Missouri happens to be among the sates that is yet to pass into the law the collection of internet sales tax.

Montana

Montana also is among the state that does not have internet sales tax.

Nebraska

Nebraska has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – Jan. 1, 2019
  • Minimum Sales Thresholds – $100,000 or 200 transactions

Nevada

Nevada has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – Proposed
  • Minimum Sales Thresholds – $100,000 or 200 transactions

New Hampshire

New Hampshire is yet to pass into law the internet sales tax.

New Jersey                

New Jersey has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – Nov. 1, 2018
  • Minimum Sales Thresholds – $100,000 or 200 transactions

New Mexico

New Mexico is also among the states in the United States that is yet to pass into law the internet sales tax.

New York

New York has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – Jan. 15, 2019
  • Minimum Sales Thresholds – $300,000 and 100 transactions

North Carolina                                   

North Carolina has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – Nov. 1, 2018
  • Minimum Sales Thresholds – $100,000 or 200 transactions

North Dakota

North Dakota has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – Oct. 1, 2018
  • Minimum Sales Thresholds – $100,000 or 200 transactions

Ohio

In the state of Ohio, there is no internet sales tax.

Oklahoma

Oklahoma is among the states that is yet to pass into law the internet sales tax.

Oregon

In Oregon, there is no internet sales tax.

Pennsylvania

Pennsylvania does not have internet sales tax.

Rhode Island            

Rhode Island has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – Aug.17, 2017
  • Minimum Sales Thresholds – $100,000 or 200 transactions

South Carolina       

South Carolina has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – Nov. 1, 2018
  • Minimum Sales Thresholds – $100,000

South Dakota

South Dakota has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – Nov. 1, 2018
  • Minimum Sales Thresholds – $100,000 or 200 transactions

Tennessee

Tennessee has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – Pending further legislation
  • Minimum Sales Thresholds – $500,000

Texas

Texas is among the states in the United States that is yet to pass into law the internet sales tax.

Utah

Utah has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – Jan. 1, 2019
  • Minimum Sales Thresholds – $100,000 or 200 transactions

Vermont

Vermont has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – July 1, 2018
  • Minimum Sales Thresholds – $100,000 or 200 transactions

Virginia

Virginia is also among the states in the United States that has no internet sales tax.

Washington

Washington has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – Jan. 1, 2018
  • Minimum Sales Thresholds – $100,000 or 200 transactions

West Virginia

West Virginia has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – Jan. 1, 2019
  • Minimum Sales Thresholds – $100,000 or 200 transactions

Wisconsin

Wisconsin has internet sales tax and these are the details;

  • Internet Sales Tax Start Date – Oct. 1, 2018
  • Minimum Sales Thresholds – $100,000 or 200 transactions

Wyoming

Wyoming is also among the states in the United States that is yet to pass into law the internet sales tax.

Ajaero Tony Martins