What are notice & report laws?
States with “notice & report” laws are similar to economic nexus laws in that they require all sellers who meet either a revenue (ex: $100,000/year) or transaction count (ex: 200 transactions) threshold to comply with the state’s sales tax law.
But they are different in that the seller who meets the threshold can elect to do one of two things:
1) Collect sales tax from buyers in that state
2) Send a series of notices to both the buyer and the state reporting how much sales tax you buyer would have paid if you had collected sales tax.
The Sales & Tranactions checker will also show you if you meet the notice & report thresholds in a state.
- For more info, read our blog post about notice & report laws in each state.