Tennessee Lowers Nexus Thresholds

Tennessee Governor Bill Lee signed legislation on June 30, 2020 adjusting the state’s sales thresholds for economic nexus. Effective October 1, 2020, remote sellers making in excess of $100,000 in annual sales into the state will be required to collect and remit sales tax, which is a change from the previous threshold of $500,000 in annual sales. The threshold for Marketplace Facilitators was also lowered from $500,000 to $100,000 in annual sales for when they are required to collect and remit Tennessee sales tax on behalf of their sellers.