New York—Sales and Use Tax: Economic Nexus Threshold Increases

28 June 2019

New York increases the sales and use tax economic nexus threshold for businesses and marketplace providers that have no physical presence in the state.

New Economic Threshold

The economic nexus threshold increases from more than $300,000 to more than $500, 000 in sales of tangible personal property delivered in New York. The additional requirement of more than 100 sales of tangible personal property delivered in New York remains the same.

As a result of the increased threshold, businesses and marketplace providers that have no physical presence in New York that meet the following requirements in the immediately preceding four sales tax quarters are required to register and collect/remit sales tax:

  • make or facilitate more than $500,000 in sales of tangible personal property delivered in New York; and
  • make or facilitate more than 100 sales of tangible personal property delivered in New York.

Retroactive Effective Dates

The increase for businesses that have no physical presence in New York is effective retroactively to June 21, 2018. The increase for marketplace providers is effective retroactively to June 1, 2019.

Ch. 39 (S.B. 6615), Laws 2019, effective June 24, 2019, except as noted