State-by-state guide to click-through nexus laws
If you sell into states where you don’t collect sales tax, you need to be aware of click-through nexus laws.
Click-through nexus laws by state
Last updated October 11, 2021
Nexus is a connection between a state and a business that enables the state to impose a sales tax collection obligation on the business. For decades, nexus was limited to having a physical presence in a state. This prevented states from taxing the growing number of sales by out-of-state, internet sellers.
Click-through nexus laws first emerged fourteen years ago as a creative response to the physical presence limitation. Under click-through nexus laws, an out-of-state business establishes a physical connection to a state through agreements to reward persons in the state for directly or indirectly referring potential purchasers through links on a website (hence the name), or otherwise.
More than 20 states have click-through nexus laws, which may now be easier than ever to enforce. Although physical presence in a state still triggers nexus, states now also have the authority to tax remote sales: The physical presence limitation was overruled by the Supreme Court of the United States.
Below you’ll find a state-by-state breakdown of click-through nexus laws. Bear in mind they’re subject to change, and click-through nexus is just one of many ways to establish an obligation to collect and remit sales tax. For more information or assistance in determining your sales tax registration, collection, and remittance requirements, contact Avalara Professional Services.
Although we hope you’ll find the information helpful, this guide does not offer a substitute for professional legal or tax advice. If you have questions about your tax liability or concerns about compliance, please consult your qualified legal, tax, or accounting professional. This information was first compiled three years ago. Because states constantly update and amend their sales and use tax laws, see each state’s tax authority website for the most up-to-date and comprehensive information.
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Arkansas
Enforcement date:
October 26, 2011
Repealed effective July 1, 2019
Summary:
Click-through nexus may be established in Arkansas when an out-of-state seller has an agreement with an Arkansas resident(s) whereby the resident, for a consideration, directly or indirectly refers potential purchasers to the remote seller by an internet link or otherwise, and gross receipts from sales from such referrals exceed $10,000 during the preceding 12 months. Learn more here.
California
Enforcement date:
September 15, 2012
Repealed effective April 1, 2019
Summary:
Click-through nexus may be established in California when an out-of-state seller compensates persons in California who solicit and refer potential customers for the seller by an internet link or otherwise, and such referrals generate $10,000 in California sales for the remote seller, and the remote seller sold more than $1 million in products to California consumers in the preceding 12 months. Learn more here.
Colorado
Enforcement date:
July 1, 2014
Repealed effective June 1, 2019
Summary:
Click-through nexus may be established in Colorado when an out-of-state seller has an agreement with a representative in Colorado whereby the representative, for a consideration, directly or indirectly refers potential customers to the out-of-state seller through internet promotional methods (e.g., a link on a website). Learn more here.
Connecticut
Enforcement date:
May 4, 2011; amended as of July 1, 2019
Summary:
Click-through nexus may be established in Connecticut when an out-of-state seller has an agreement with a Connecticut resident(s) whereby the resident, for a consideration, directly or indirectly refers potential purchasers to the seller by an internet link or otherwise, and gross receipts from sales from such referrals exceed $250,000 during the preceding four quarterly periods. As of July 1, 2019, the sales threshold changes to $100,000. Learn more here and here.
Georgia
Enforcement date:
October 1, 2012
Summary:
Click-through nexus may be established in Georgia when an out-of-state seller has an agreement with a Georgia resident(s) whereby the resident, for a consideration, directly or indirectly refers potential purchasers to the seller by an internet link or otherwise, and cumulative gross receipts from sales from such referrals exceed $50,000 during the preceding 12 months. Learn more here.
Idaho
Enforcement date:
July 1, 2018
Summary:
Click-through nexus may be established in Idaho when an out-of-state seller has an agreement with an Idaho seller to refer potential buyers to the remote seller for a commission paid on resulting sales, and total sales from such referrals to Idaho buyers exceed $10,000 in the preceding 12 months. Learn more here.
Illinois
Enforcement date:
January 1, 2015
Summary:
Click-through nexus may be established in Illinois when an out-of-state retailer has a contract with a person in Illinois to refer potential customers to the remote retailer for a commission or other consideration; the in-state person provides a promotional code, etc., to potential customers that allows the retailer to trace the customers’ purchases; and the retailer’s cumulative gross sales from such referrals were at least $10,000 during the preceding four quarterly periods.
Click-through nexus was temporarily repealed in Illinois (June 28, 2019, through December 31, 2019). It was reenacted effective January 1, 2020. Learn more here.
Iowa
Enforcement date:
January 1, 2019
Summary:
Click-through nexus may be established in Iowa when an out-of-state retailer enters into an agreement with a resident under which the resident, for a commission or similar consideration, directly or indirectly refers potential customers to the retailer, and the retailer has more than $10,000 in gross revenue from Iowa sales in the immediately preceding or current calendar year. Learn more here.
Kansas
Enforcement date:
October 1, 2013
Repealed effective July 1, 2021
Summary:
Click-through nexus may be established in Kansas when an out-of-state retailer enters into an agreement with a resident(s) of Kansas under which the resident, for a commission or other consideration, directly or indirectly refers potential customers to the retailer, and cumulative gross receipts from such referrals exceed $10,000 in the preceding 12 months. Learn more here.
Louisiana
Enforcement date:
April 1, 2016
Summary:
Click-through nexus may be established in Louisiana when an out-of-state seller has an agreement with a Louisiana resident or business under which the resident or business, for a commission or other consideration, directly or indirectly refers potential customers to the seller, and cumulative gross receipts in Louisiana from sales of property from such agreements exceed $50,000 during the preceding 12 months. Learn more here.
Maine
Enforcement date:
October 9, 2013
Summary:
Click-through nexus may be established in Maine when an out-of-state seller has an agreement with a person in Maine under which the person, for a commission or other consideration, directly or indirectly refers potential customers to the seller, and cumulative gross receipts from sales of property in Maine from such agreements exceed $10,000 during the preceding 12 months. Learn more here.
Michigan
Enforcement date:
October 1, 2015
Summary:
Click-through nexus may be established in Michigan when an out-of-state seller has an agreement with a resident of Michigan under which the resident, for a commission or other consideration, directly or indirectly refers potential customers to the seller, and cumulative gross receipts from sales of property in Michigan from such agreements exceed $10,000 during the preceding 12 months, and the seller’s total cumulative gross receipts from sales to Michigan purchasers exceed $50,000 during the immediately preceding 12 months. Learn more here.
Minnesota
Enforcement date:
July 1, 2013
Summary:
Click-through nexus may be established in Minnesota when an out-of-state seller has an agreement with a resident of Minnesota under which the resident, for a commission or other consideration, directly or indirectly refers potential customers to the seller, and cumulative gross receipts from sales of tangible personal property in Minnesota from such agreements exceed $10,000 during the preceding four quarters. Learn more here.
Missouri
Enforcement date:
July 1, 2013
Repealed effective January 1, 2023
Summary:
Click-through nexus may be established in Missouri when an out-of-state seller has an agreement with a resident of Missouri under which the resident, for a commission or other consideration, directly or indirectly refers potential customers to the seller, and cumulative gross receipts from sales of tangible personal property in Missouri from such agreements exceed $10,000 during the preceding 12 months. Learn more here.
Nevada
Enforcement date:
October 1, 2015
Summary:
Click-through nexus may be established in Nevada when an out-of-state seller has an agreement with a resident of Nevada under which the resident, for a commission or other consideration, directly or indirectly refers potential customers to the seller, and cumulative gross receipts from sales of property in Nevada from such agreements exceed $10,000 during the preceding four quarterly periods. Learn more here.
New Jersey
Enforcement date:
July 1, 2014
Summary:
Click-through nexus may be established in New Jersey when an out-of-state seller has an agreement with an entity in New Jersey under which the entity, for a commission or other consideration, directly or indirectly refers potential customers to the seller, and cumulative gross receipts from sales of property in New Jersey from such agreements exceed $10,000 during the preceding four quarterly sales tax periods. Learn more here.
New York
Enforcement date:
June 1, 2008
Summary:
Click-through nexus may be established in New York when an out-of-state seller has an agreement with a resident of New York under which the resident, for a commission or other consideration, directly or indirectly refers potential customers to the seller, and cumulative gross receipts from sales of property in New York from such agreements exceed $10,000 during the preceding four quarterly sales tax periods. Learn more here.
North Carolina
Enforcement date:
August 7, 2009
Summary:
Click-through nexus may be established in North Carolina when an out-of-state seller has an agreement with an in-state entity under which the entity, for a commission or other consideration, directly or indirectly refers potential customers to the seller, and cumulative gross receipts from sales of tangible personal property in North Carolina from such agreements exceed $10,000 during the preceding four quarterly sales tax periods. Learn more here.
Ohio
Enforcement date:
July 1, 2015
Repealed effective August 1, 2019
Summary:
Click-through nexus may be established in Ohio when an out-of-state seller has an agreement with an in-state entity under which the entity, for a commission or other consideration, directly or indirectly refers potential customers to the seller, and cumulative gross receipts from sales of property in Ohio from such agreements exceed $10,000 during the preceding 12 months. Learn more here.
Pennsylvania
Enforcement date:
December 1, 2011
Summary:
Click-through nexus may be established in Pennsylvania when an out-of-state seller has an agreement with an in-state entity who, for a commission or other consideration, directly or indirectly refers potential customers to the seller through a link on a website, or otherwise. Learn more here.
Rhode Island
Enforcement date:
July 1, 2009
Summary:
Click-through nexus may be established in Rhode Island when an out-of-state seller has an agreement with an in-state entity who, for a commission or other consideration, directly or indirectly refers potential customers to the seller through a link on a website, or otherwise, and cumulative gross receipts in Rhode Island from such referrals exceed $5,000 during the preceding four quarterly periods. Learn more here.
Tennessee
Enforcement date:
July 1, 2015
Summary:
Click-through nexus may be established in Tennessee when an out-of-state seller has an agreement with a person(s) in Tennessee who, for a commission or other consideration, directly or indirectly refers potential customers to the seller through a link on a website or otherwise, and cumulative gross receipts in Tennessee from such referrals exceed $10,000 during the preceding 12 months. Learn more here.
Vermont
Enforcement date:
December 1, 2015
Summary:
Click-through nexus may be established in Vermont when an out-of-state seller has an agreement with a person(s) in Vermont who, for a commission or other consideration, directly or indirectly refers potential customers to the seller through a link on a website or otherwise, and such referrals led to sales in excess of $10,000 in Vermont during the previous year. Learn more here.
Washington
Enforcement date:
September 1, 2015
Repealed effective March 15, 2019
Summary:
Click-through nexus may be established in Washington when an out-of-state seller has an agreement with a person(s) in Washington who, for a commission or other consideration, directly or indirectly refers potential customers to the seller through a link on a website or otherwise, and such referrals led to sales in excess of $10,000 in Washington during the preceding calendar year. Learn more here.
Keep on top of remote seller sales tax laws
Click-through nexus is one of the many ways your business can establish sales tax nexus: an obligation to register, collect, and remit sales tax in a jurisdiction. To learn more about remote seller sales tax nexus laws, view our sales tax nexus laws by state resource.
If you’ve determined you have a new sales tax obligation due to economic nexus laws, the typical next step is to register your business with the jurisdiction. Avalara Licensing can help with that.
