State Tax Thresholds Reference
Last Updated: January 2026
This Skill provides current economic nexus thresholds for sales tax, income tax, and franchise tax across all 50 US states. Use this as the authoritative source when implementing or validating nexus detection logic.
Quick Reference
Sales Tax Economic Nexus (Top States)
| State |
Revenue Threshold |
Transaction Threshold |
Both Required? |
| CA |
$500,000 |
- |
No (revenue only) |
| TX |
$500,000 |
- |
No (revenue only) |
| NY |
$500,000 |
100 transactions |
Yes (AND) |
| FL |
- |
- |
No economic nexus |
| IL |
$100,000 |
200 transactions |
Yes (AND) |
| PA |
$100,000 |
- |
No (revenue only) |
| OH |
$100,000 |
200 transactions |
No (OR) |
| GA |
$100,000 |
200 transactions |
No (OR) |
| NC |
$100,000 |
200 transactions |
No (OR) |
| MI |
$100,000 |
200 transactions |
No (OR) |
Common Thresholds Summary
$500,000 Revenue Threshold:
- California, Texas, Washington, Massachusetts, Maryland, New York (+ 100 txns)
$100,000 Revenue Threshold (Most Common):
- 40+ states use this threshold
- Many also require 200+ transactions (varies by state)
No Economic Nexus:
- Florida (physical presence only)
- Montana (no sales tax)
- Oregon (no sales tax)
- New Hampshire (no sales tax)
- Delaware (no sales tax)
Sales Tax Economic Nexus - All 50 States
Alabama
- Revenue: $250,000
- Transactions: None required
- Effective Date: October 1, 2018
- Notes: One of the lower thresholds
Alaska
- No statewide sales tax
- Notes: Some local jurisdictions have sales tax
Arizona
- Revenue: $100,000
- Transactions: None required (revenue only)
- Effective Date: October 1, 2019
Arkansas
- Revenue: $100,000
- Transactions: 200 transactions
- Combined: OR (either threshold triggers)
- Effective Date: July 1, 2019
California
- Revenue: $500,000
- Transactions: None required
- Effective Date: April 1, 2019
- Notes: Higher threshold than most states
Colorado
- Revenue: $100,000
- Transactions: None required
- Effective Date: December 1, 2018
Connecticut
- Revenue: $100,000
- Transactions: 200 transactions
- Combined: AND (both required)
- Effective Date: December 1, 2018
Delaware
Florida
- No economic nexus
- Physical presence required
- Notes: One of few states without economic nexus
Georgia
- Revenue: $100,000
- Transactions: 200 transactions
- Combined: OR (either threshold)
- Effective Date: January 1, 2019
Hawaii
- Revenue: $100,000
- Transactions: 200 transactions
- Combined: OR (either threshold)
- Effective Date: July 1, 2018
Idaho
- Revenue: $100,000
- Transactions: None required
- Effective Date: June 1, 2019
Illinois
- Revenue: $100,000
- Transactions: 200 transactions
- Combined: AND (both required)
- Effective Date: October 1, 2018
Indiana
- Revenue: $100,000
- Transactions: 200 transactions
- Combined: OR (either threshold)
- Effective Date: October 1, 2018
Iowa
- Revenue: $100,000
- Transactions: None required
- Effective Date: January 1, 2019
Kansas
- Revenue: $100,000
- Transactions: None required
- Effective Date: October 1, 2019
Kentucky
- Revenue: $100,000
- Transactions: 200 transactions
- Combined: OR (either threshold)
- Effective Date: October 1, 2018
Louisiana
- Revenue: $100,000
- Transactions: 200 transactions
- Combined: OR (either threshold)
- Effective Date: July 1, 2020
Maine
- Revenue: $100,000
- Transactions: None required
- Effective Date: July 1, 2018
Maryland
- Revenue: $100,000
- Transactions: 200 transactions
- Combined: OR (either threshold)
- Effective Date: October 1, 2018
- 2019 Update: Changed to $100,000 from prior threshold
Massachusetts
- Revenue: $100,000
- Transactions: None required
- Effective Date: October 1, 2019
- Notes: Previously had cookie nexus rules
Michigan
- Revenue: $100,000
- Transactions: 200 transactions
- Combined: OR (either threshold)
- Effective Date: October 1, 2018
Minnesota
- Revenue: $100,000
- Transactions: 200 transactions (retail sales)
- Combined: OR (either threshold)
- Effective Date: October 1, 2018
Mississippi
- Revenue: $250,000
- Transactions: None required
- Effective Date: September 1, 2018
Missouri
- Revenue: $100,000
- Transactions: None required
- Effective Date: January 1, 2023
Montana
Nebraska
- Revenue: $100,000
- Transactions: 200 transactions
- Combined: OR (either threshold)
- Effective Date: January 1, 2019
Nevada
- Revenue: $100,000
- Transactions: 200 transactions
- Combined: OR (either threshold)
- Effective Date: October 1, 2018
New Hampshire
New Jersey
- Revenue: $100,000
- Transactions: 200 transactions
- Combined: OR (either threshold)
- Effective Date: November 1, 2018
New Mexico
- Revenue: $100,000
- Transactions: None required
- Effective Date: July 1, 2019
New York
- Revenue: $500,000
- Transactions: 100 transactions
- Combined: AND (both required)
- Effective Date: June 21, 2018
- Notes: Higher revenue threshold but lower transaction count
North Carolina
- Revenue: $100,000
- Transactions: 200 transactions
- Combined: OR (either threshold)
- Effective Date: November 1, 2018
North Dakota
- Revenue: $100,000
- Transactions: None required
- Effective Date: October 1, 2018
Ohio
- Revenue: $100,000
- Transactions: 200 transactions
- Combined: OR (either threshold)
- Effective Date: August 1, 2019
Oklahoma
- Revenue: $100,000
- Transactions: None required
- Effective Date: November 1, 2019
Oregon
Pennsylvania
- Revenue: $100,000
- Transactions: None required
- Effective Date: July 1, 2019
Rhode Island
- Revenue: $100,000
- Transactions: 200 transactions
- Combined: OR (either threshold)
- Effective Date: July 1, 2019
South Carolina
- Revenue: $100,000
- Transactions: None required
- Effective Date: November 1, 2018
South Dakota
- Revenue: $100,000
- Transactions: 200 transactions
- Combined: OR (either threshold)
- Effective Date: November 1, 2018
- Notes: The Wayfair case originated from this state
Tennessee
- Revenue: $100,000
- Transactions: None required
- Effective Date: October 1, 2019
Texas
- Revenue: $500,000
- Transactions: None required
- Effective Date: October 1, 2019
- Notes: Higher threshold than most states
Utah
- Revenue: $100,000
- Transactions: 200 transactions
- Combined: OR (either threshold)
- Effective Date: January 1, 2019
Vermont
- Revenue: $100,000
- Transactions: 200 transactions
- Combined: OR (either threshold)
- Effective Date: July 1, 2018
Virginia
- Revenue: $100,000
- Transactions: 200 transactions
- Combined: OR (either threshold)
- Effective Date: July 1, 2019
Washington
- Revenue: $100,000
- Transactions: None required
- Effective Date: October 1, 2018
West Virginia
- Revenue: $100,000
- Transactions: 200 transactions
- Combined: OR (either threshold)
- Effective Date: January 1, 2019
Wisconsin
- Revenue: $100,000
- Transactions: None required
- Effective Date: October 1, 2018
Wyoming
- Revenue: $100,000
- Transactions: 200 transactions
- Combined: OR (either threshold)
- Effective Date: February 1, 2019
Income Tax Nexus & P.L. 86-272
Public Law 86-272 Overview
Protection Applies When:
- Only activity is solicitation of orders for tangible personal property
- Orders are approved and filled outside the state
- No other business activities in the state
Protection Does NOT Apply To:
- Services (e.g., software as a service)
- Intangible goods
- Selling products AND providing services
- Having employees perform non-solicitation activities
- Maintaining inventory in the state
States with Factor Presence Nexus
California:
- $500,000+ sales (property + payroll + sales)
- $50,000+ property
- $50,000+ payroll
- 25% of total sales
New York:
- No factor presence statute (physical presence required)
Texas:
- See Franchise Tax section
Other States:
- Most states rely on physical presence for income tax
- P.L. 86-272 provides protection for many out-of-state sellers
Franchise Tax Thresholds
Texas Franchise Tax (Margin Tax)
Revenue Threshold: $1,230,000 (2024)
- Below this = no franchise tax due
- Above this = subject to margin tax
Tax Rates:
- Retail/Wholesale: 0.375%
- Other businesses: 0.75%
Calculation Base:
- Total revenue minus either:
- Cost of goods sold (COGS)
- Compensation
- 30% of total revenue (standard deduction)
- $1 million deduction
Delaware Franchise Tax
Based on authorized shares:
- Minimum: $175
- Maximum: $200,000
Other States
Most states don't have separate franchise taxes. Check state-specific rules for:
- Annual report fees
- Minimum taxes
- Entity-level taxes
Alert Severity Guidelines
Use these guidelines when generating alerts:
RED (Critical) - Immediate Action Required
- Revenue exceeds threshold by 20%+ OR
- Both revenue AND transaction thresholds met (for AND states) OR
- Already operating in state without registration
ORANGE (Warning) - Review Recommended
- Revenue at 80-120% of threshold OR
- One threshold met but not both (for AND states) OR
- P.L. 86-272 judgment required (services + goods)
YELLOW (Info) - Monitor Situation
- Revenue at 60-80% of threshold OR
- Trending toward threshold (analyze historical data) OR
- Recent state law change affecting nexus
Validation Examples
California Sales Tax
// Correct implementation
if (stateRevenue['CA'] >= 500000) {
createAlert({
state: 'CA',
type: 'SALES_NEXUS',
subtype: 'ECONOMIC_NEXUS',
severity: 'RED',
threshold: 500000,
currentAmount: stateRevenue['CA'],
message: 'California sales tax economic nexus triggered'
});
}
New York Sales Tax (AND logic)
// Correct - BOTH thresholds required
if (stateRevenue['NY'] >= 500000 && transactionCount['NY'] >= 100) {
createAlert({
state: 'NY',
type: 'SALES_NEXUS',
subtype: 'ECONOMIC_NEXUS',
severity: 'RED',
threshold: 500000,
currentAmount: stateRevenue['NY'],
message: 'New York sales tax nexus - both revenue and transaction thresholds met'
});
}
Texas Franchise Tax
// Correct threshold for 2024
if (totalRevenue >= 1230000) {
createAlert({
state: 'TX',
type: 'FRANCHISE_TAX',
severity: 'RED',
threshold: 1230000,
currentAmount: totalRevenue,
message: 'Texas franchise tax threshold exceeded'
});
}
Maintenance Notes
Update Frequency: Review quarterly (January, April, July, October)
Sources to Check:
- State department of revenue websites
- Tax Foundation updates
- Bloomberg Tax
- State tax policy changes
Recent Changes:
- January 2024: TX franchise tax threshold increased to $1,230,000
- July 2023: MO economic nexus enacted ($100,000)
States to Watch:
- Florida (may enact economic nexus)
- States changing transaction count requirements
Common Mistakes to Avoid
Using OR logic for AND states
- NY requires BOTH $500k revenue AND 100 transactions
- IL requires BOTH $100k revenue AND 200 transactions
- CT requires BOTH $100k revenue AND 200 transactions
Forgetting no-sales-tax states
- AK, DE, MT, NH, OR have no statewide sales tax
- Don't generate alerts for these states
Outdated thresholds
- Always check this Skill for current amounts
- Don't hardcode thresholds from old references
Applying P.L. 86-272 to services
- Protection only for tangible goods
- SaaS, consulting, etc. are NOT protected
Ignoring measurement period
- Most states measure on rolling 12-month or calendar year basis
- Check state-specific lookback periods
References
- South Dakota v. Wayfair (2018): Supreme Court case enabling economic nexus
- P.L. 86-272 (1959): Federal law limiting state taxation of interstate commerce
- Streamlined Sales Tax: Multi-state initiative for sales tax simplification
When using this Skill:
- Always verify the current date matches "Last Updated" above
- If more than 3 months old, check for state law changes
- Cite specific thresholds when reviewing code
- Generate alerts using severity guidelines above
1---2name: state-tax-thresholds3description: Current state-by-state tax nexus thresholds for all 50 states including economic nexus, P.L. 86-272 rules, and franchise tax. Use when validating tax calculations, reviewing nexus detection logic, or checking threshold amounts.4---5
6# State Tax Thresholds Reference
7
8**Last Updated:** January 2026
9
10This Skill provides current economic nexus thresholds for sales tax, income tax, and franchise tax across all 50 US states. Use this as the authoritative source when implementing or validating nexus detection logic.
11
12## Quick Reference
13
14### Sales Tax Economic Nexus (Top States)
15
16| State | Revenue Threshold | Transaction Threshold | Both Required? |
17|-------|------------------|----------------------|----------------|
18| CA | $500,000 | - | No (revenue only) |
19| TX | $500,000 | - | No (revenue only) |
20| NY | $500,000 | 100 transactions | **Yes (AND)** |
21| FL | - | - | No economic nexus |
22| IL | $100,000 | 200 transactions | **Yes (AND)** |
23| PA | $100,000 | - | No (revenue only) |
24| OH | $100,000 | 200 transactions | No (OR) |
25| GA | $100,000 | 200 transactions | No (OR) |
26| NC | $100,000 | 200 transactions | No (OR) |
27| MI | $100,000 | 200 transactions | No (OR) |
28
29### Common Thresholds Summary
30
31**$500,000 Revenue Threshold:**
32- California, Texas, Washington, Massachusetts, Maryland, New York (+ 100 txns)
33
34**$100,000 Revenue Threshold (Most Common):**
35- 40+ states use this threshold
36- Many also require 200+ transactions (varies by state)
37
38**No Economic Nexus:**
39- Florida (physical presence only)
40- Montana (no sales tax)
41- Oregon (no sales tax)
42- New Hampshire (no sales tax)
43- Delaware (no sales tax)
44
45## Sales Tax Economic Nexus - All 50 States
46
47### Alabama
48- **Revenue:** $250,000
49- **Transactions:** None required
50- **Effective Date:** October 1, 2018
51- **Notes:** One of the lower thresholds
52
53### Alaska
54- **No statewide sales tax**
55- **Notes:** Some local jurisdictions have sales tax
56
57### Arizona
58- **Revenue:** $100,000
59- **Transactions:** None required (revenue only)
60- **Effective Date:** October 1, 2019
61
62### Arkansas
63- **Revenue:** $100,000
64- **Transactions:** 200 transactions
65- **Combined:** OR (either threshold triggers)
66- **Effective Date:** July 1, 2019
67
68### California
69- **Revenue:** $500,000
70- **Transactions:** None required
71- **Effective Date:** April 1, 2019
72- **Notes:** Higher threshold than most states
73
74### Colorado
75- **Revenue:** $100,000
76- **Transactions:** None required
77- **Effective Date:** December 1, 2018
78
79### Connecticut
80- **Revenue:** $100,000
81- **Transactions:** 200 transactions
82- **Combined:** AND (both required)
83- **Effective Date:** December 1, 2018
84
85### Delaware
86- **No sales tax**
87
88### Florida
89- **No economic nexus**
90- **Physical presence required**
91- **Notes:** One of few states without economic nexus
92
93### Georgia
94- **Revenue:** $100,000
95- **Transactions:** 200 transactions
96- **Combined:** OR (either threshold)
97- **Effective Date:** January 1, 2019
98
99### Hawaii
100- **Revenue:** $100,000
101- **Transactions:** 200 transactions
102- **Combined:** OR (either threshold)
103- **Effective Date:** July 1, 2018
104
105### Idaho
106- **Revenue:** $100,000
107- **Transactions:** None required
108- **Effective Date:** June 1, 2019
109
110### Illinois
111- **Revenue:** $100,000
112- **Transactions:** 200 transactions
113- **Combined:** AND (both required)
114- **Effective Date:** October 1, 2018
115
116### Indiana
117- **Revenue:** $100,000
118- **Transactions:** 200 transactions
119- **Combined:** OR (either threshold)
120- **Effective Date:** October 1, 2018
121
122### Iowa
123- **Revenue:** $100,000
124- **Transactions:** None required
125- **Effective Date:** January 1, 2019
126
127### Kansas
128- **Revenue:** $100,000
129- **Transactions:** None required
130- **Effective Date:** October 1, 2019
131
132### Kentucky
133- **Revenue:** $100,000
134- **Transactions:** 200 transactions
135- **Combined:** OR (either threshold)
136- **Effective Date:** October 1, 2018
137
138### Louisiana
139- **Revenue:** $100,000
140- **Transactions:** 200 transactions
141- **Combined:** OR (either threshold)
142- **Effective Date:** July 1, 2020
143
144### Maine
145- **Revenue:** $100,000
146- **Transactions:** None required
147- **Effective Date:** July 1, 2018
148
149### Maryland
150- **Revenue:** $100,000
151- **Transactions:** 200 transactions
152- **Combined:** OR (either threshold)
153- **Effective Date:** October 1, 2018
154- **2019 Update:** Changed to $100,000 from prior threshold
155
156### Massachusetts
157- **Revenue:** $100,000
158- **Transactions:** None required
159- **Effective Date:** October 1, 2019
160- **Notes:** Previously had cookie nexus rules
161
162### Michigan
163- **Revenue:** $100,000
164- **Transactions:** 200 transactions
165- **Combined:** OR (either threshold)
166- **Effective Date:** October 1, 2018
167
168### Minnesota
169- **Revenue:** $100,000
170- **Transactions:** 200 transactions (retail sales)
171- **Combined:** OR (either threshold)
172- **Effective Date:** October 1, 2018
173
174### Mississippi
175- **Revenue:** $250,000
176- **Transactions:** None required
177- **Effective Date:** September 1, 2018
178
179### Missouri
180- **Revenue:** $100,000
181- **Transactions:** None required
182- **Effective Date:** January 1, 2023
183
184### Montana
185- **No sales tax**
186
187### Nebraska
188- **Revenue:** $100,000
189- **Transactions:** 200 transactions
190- **Combined:** OR (either threshold)
191- **Effective Date:** January 1, 2019
192
193### Nevada
194- **Revenue:** $100,000
195- **Transactions:** 200 transactions
196- **Combined:** OR (either threshold)
197- **Effective Date:** October 1, 2018
198
199### New Hampshire
200- **No sales tax**
201
202### New Jersey
203- **Revenue:** $100,000
204- **Transactions:** 200 transactions
205- **Combined:** OR (either threshold)
206- **Effective Date:** November 1, 2018
207
208### New Mexico
209- **Revenue:** $100,000
210- **Transactions:** None required
211- **Effective Date:** July 1, 2019
212
213### New York
214- **Revenue:** $500,000
215- **Transactions:** 100 transactions
216- **Combined:** AND (both required)
217- **Effective Date:** June 21, 2018
218- **Notes:** Higher revenue threshold but lower transaction count
219
220### North Carolina
221- **Revenue:** $100,000
222- **Transactions:** 200 transactions
223- **Combined:** OR (either threshold)
224- **Effective Date:** November 1, 2018
225
226### North Dakota
227- **Revenue:** $100,000
228- **Transactions:** None required
229- **Effective Date:** October 1, 2018
230
231### Ohio
232- **Revenue:** $100,000
233- **Transactions:** 200 transactions
234- **Combined:** OR (either threshold)
235- **Effective Date:** August 1, 2019
236
237### Oklahoma
238- **Revenue:** $100,000
239- **Transactions:** None required
240- **Effective Date:** November 1, 2019
241
242### Oregon
243- **No sales tax**
244
245### Pennsylvania
246- **Revenue:** $100,000
247- **Transactions:** None required
248- **Effective Date:** July 1, 2019
249
250### Rhode Island
251- **Revenue:** $100,000
252- **Transactions:** 200 transactions
253- **Combined:** OR (either threshold)
254- **Effective Date:** July 1, 2019
255
256### South Carolina
257- **Revenue:** $100,000
258- **Transactions:** None required
259- **Effective Date:** November 1, 2018
260
261### South Dakota
262- **Revenue:** $100,000
263- **Transactions:** 200 transactions
264- **Combined:** OR (either threshold)
265- **Effective Date:** November 1, 2018
266- **Notes:** The Wayfair case originated from this state
267
268### Tennessee
269- **Revenue:** $100,000
270- **Transactions:** None required
271- **Effective Date:** October 1, 2019
272
273### Texas
274- **Revenue:** $500,000
275- **Transactions:** None required
276- **Effective Date:** October 1, 2019
277- **Notes:** Higher threshold than most states
278
279### Utah
280- **Revenue:** $100,000
281- **Transactions:** 200 transactions
282- **Combined:** OR (either threshold)
283- **Effective Date:** January 1, 2019
284
285### Vermont
286- **Revenue:** $100,000
287- **Transactions:** 200 transactions
288- **Combined:** OR (either threshold)
289- **Effective Date:** July 1, 2018
290
291### Virginia
292- **Revenue:** $100,000
293- **Transactions:** 200 transactions
294- **Combined:** OR (either threshold)
295- **Effective Date:** July 1, 2019
296
297### Washington
298- **Revenue:** $100,000
299- **Transactions:** None required
300- **Effective Date:** October 1, 2018
301
302### West Virginia
303- **Revenue:** $100,000
304- **Transactions:** 200 transactions
305- **Combined:** OR (either threshold)
306- **Effective Date:** January 1, 2019
307
308### Wisconsin
309- **Revenue:** $100,000
310- **Transactions:** None required
311- **Effective Date:** October 1, 2018
312
313### Wyoming
314- **Revenue:** $100,000
315- **Transactions:** 200 transactions
316- **Combined:** OR (either threshold)
317- **Effective Date:** February 1, 2019
318
319## Income Tax Nexus & P.L. 86-272
320
321### Public Law 86-272 Overview
322
323**Protection Applies When:**
324- Only activity is solicitation of orders for tangible personal property
325- Orders are approved and filled outside the state
326- No other business activities in the state
327
328**Protection Does NOT Apply To:**
329- Services (e.g., software as a service)
330- Intangible goods
331- Selling products AND providing services
332- Having employees perform non-solicitation activities
333- Maintaining inventory in the state
334
335### States with Factor Presence Nexus
336
337**California:**
338- $500,000+ sales (property + payroll + sales)
339- $50,000+ property
340- $50,000+ payroll
341- 25% of total sales
342
343**New York:**
344- No factor presence statute (physical presence required)
345
346**Texas:**
347- See Franchise Tax section
348
349**Other States:**
350- Most states rely on physical presence for income tax
351- P.L. 86-272 provides protection for many out-of-state sellers
352
353## Franchise Tax Thresholds
354
355### Texas Franchise Tax (Margin Tax)
356
357**Revenue Threshold:** $1,230,000 (2024)
358- Below this = no franchise tax due
359- Above this = subject to margin tax
360
361**Tax Rates:**
362- Retail/Wholesale: 0.375%
363- Other businesses: 0.75%
364
365**Calculation Base:**
366- Total revenue minus either:
367 - Cost of goods sold (COGS)
368 - Compensation
369 - 30% of total revenue (standard deduction)
370 - $1 million deduction
371
372### Delaware Franchise Tax
373
374**Based on authorized shares:**
375- Minimum: $175
376- Maximum: $200,000
377
378### Other States
379
380Most states don't have separate franchise taxes. Check state-specific rules for:
381- Annual report fees
382- Minimum taxes
383- Entity-level taxes
384
385## Alert Severity Guidelines
386
387Use these guidelines when generating alerts:
388
389### RED (Critical) - Immediate Action Required
390- Revenue exceeds threshold by 20%+ OR
391- Both revenue AND transaction thresholds met (for AND states) OR
392- Already operating in state without registration
393
394### ORANGE (Warning) - Review Recommended
395- Revenue at 80-120% of threshold OR
396- One threshold met but not both (for AND states) OR
397- P.L. 86-272 judgment required (services + goods)
398
399### YELLOW (Info) - Monitor Situation
400- Revenue at 60-80% of threshold OR
401- Trending toward threshold (analyze historical data) OR
402- Recent state law change affecting nexus
403
404## Validation Examples
405
406### California Sales Tax
407```javascript
408// Correct implementation
409if (stateRevenue['CA'] >= 500000) {
410 createAlert({
411 state: 'CA',
412 type: 'SALES_NEXUS',
413 subtype: 'ECONOMIC_NEXUS',
414 severity: 'RED',
415 threshold: 500000,
416 currentAmount: stateRevenue['CA'],
417 message: 'California sales tax economic nexus triggered'
418 });
419}
420```
421
422### New York Sales Tax (AND logic)
423```javascript
424// Correct - BOTH thresholds required
425if (stateRevenue['NY'] >= 500000 && transactionCount['NY'] >= 100) {
426 createAlert({
427 state: 'NY',
428 type: 'SALES_NEXUS',
429 subtype: 'ECONOMIC_NEXUS',
430 severity: 'RED',
431 threshold: 500000,
432 currentAmount: stateRevenue['NY'],
433 message: 'New York sales tax nexus - both revenue and transaction thresholds met'
434 });
435}
436```
437
438### Texas Franchise Tax
439```javascript
440// Correct threshold for 2024
441if (totalRevenue >= 1230000) {
442 createAlert({
443 state: 'TX',
444 type: 'FRANCHISE_TAX',
445 severity: 'RED',
446 threshold: 1230000,
447 currentAmount: totalRevenue,
448 message: 'Texas franchise tax threshold exceeded'
449 });
450}
451```
452
453## Maintenance Notes
454
455**Update Frequency:** Review quarterly (January, April, July, October)
456
457**Sources to Check:**
458- State department of revenue websites
459- Tax Foundation updates
460- Bloomberg Tax
461- State tax policy changes
462
463**Recent Changes:**
464- January 2024: TX franchise tax threshold increased to $1,230,000
465- July 2023: MO economic nexus enacted ($100,000)
466
467**States to Watch:**
468- Florida (may enact economic nexus)
469- States changing transaction count requirements
470
471## Common Mistakes to Avoid
472
4731. **Using OR logic for AND states**
474 - NY requires BOTH $500k revenue AND 100 transactions
475 - IL requires BOTH $100k revenue AND 200 transactions
476 - CT requires BOTH $100k revenue AND 200 transactions
477
4782. **Forgetting no-sales-tax states**
479 - AK, DE, MT, NH, OR have no statewide sales tax
480 - Don't generate alerts for these states
481
4823. **Outdated thresholds**
483 - Always check this Skill for current amounts
484 - Don't hardcode thresholds from old references
485
4864. **Applying P.L. 86-272 to services**
487 - Protection only for tangible goods
488 - SaaS, consulting, etc. are NOT protected
489
4905. **Ignoring measurement period**
491 - Most states measure on rolling 12-month or calendar year basis
492 - Check state-specific lookback periods
493
494## References
495
496- **South Dakota v. Wayfair (2018):** Supreme Court case enabling economic nexus
497- **P.L. 86-272 (1959):** Federal law limiting state taxation of interstate commerce
498- **Streamlined Sales Tax:** Multi-state initiative for sales tax simplification
499
500---
501
502**When using this Skill:**
5031. Always verify the current date matches "Last Updated" above
5042. If more than 3 months old, check for state law changes
5053. Cite specific thresholds when reviewing code
5064. Generate alerts using severity guidelines above
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