Connecticut Lowers Economic Nexus Threshold

[June 28, 2019] On June 26, 2019, the governor of Connecticut signed HB 7424 into law, thereby decreasing Connecticut’s economic nexus threshold from $250,000 to $100,000. Effective July 1, 2019, Connecticut will require out-of-state retailers to collect and remit sales tax if they had gross receipts of at least $100,000 and made 200 or more retail sales into Connecticut during the preceding twelve-month period. Additionally, the legislation removes the requirement that out-of-state retailers must be regularly or systematically soliciting sales in Connecticut in order to be obligated to collect sales tax.

To view HB 7424 in its entirety, please click here.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Erik Wallin

Erik Wallin is a Senior Tax Counsel on the Tax Research Team at Sovos Compliance. Erik has been with Sovos Compliance since 2011, and his main areas of focus are on U.S. Transaction Tax Law which includes special expertise in the taxation of technology and the taxation mechanisms that apply throughout the Colorado home rule jurisdictions. Erik is a member of the Massachusetts Bar, has a B.A. from York College of Pennsylvania, a J.D. from New England School of Law, and an LL.M. in Taxation from Boston University.
Share This Post