What is the Ohio Economic Nexus?

Joshua Rubin
November 16, 2020

The Ohio economic nexus was one of many state-specific regulations that changed in the wake of the South Dakota v. Wayfair, Inc. decision. Both remote sellers and marketplace facilitators that have gross sales into Ohio should ensure that they are compliant with the latest regulations. Below, we have highlighted the key points for businesses.

Enforcement date:
August 1, 2019.

Sales/transactions threshold:
$100,000 or 200 transactions.

Measurement period:
Threshold applies to the previous or current calendar year.

Included transactions/sales:
Retail sales of tangible personal property delivered into the state.

When You Need to Register Once You Exceed the Threshold:

  • Requirements for out-of-state sellers begin as soon as substantial nexus is established.
  • For marketplace facilitators, requirements begin on the first date of the first month that is at least 30 days after substantial nexus is established and applies prospectively from that date. For example, if the threshold is met on January 20, then the marketplace facilitator must register by March 1.

Summary: Remote sellers must collect Ohio sales tax when they have gross sales into Ohio exceeding $100,000 or when they have 200 or more separate transactions into Ohio. Marketplace facilitators must collect Ohio sales tax when they make or facilitate gross sales into Ohio exceeding $100,000 or when they make or facilitate 200 or more separate transactions into Ohio.

Ohio H.B. 166 repealed previous provisions relating to software nexus and network nexus. Additionally, it repealed “a provision that created a presumption of nexus when a person provided a commission to individuals located in Ohio for referring potential customers to the seller if the cumulative gross receipts from sales (and not the commissions) are greater than $10,000,” according to the Ohio Department of Taxation.

Even if a business does not have a physical presence in Ohio, they must still comply with the economic nexus. Working with the right partner can help ensure all regulations are followed.

Ohio Sales Tax Resources: Reach out to our team for more information on Ohio economic nexus details and how you can stay compliant. Additionally, check out our interactive sales tax nexus map for real-time updates on each state.

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Joshua Rubin

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