Indiana drops the 200-transaction test from its remote-seller nexus rule

What changed in detail

Indiana Senate Enrolled Act 228 (2024), signed on 13 March 2024, removed the 200-transaction prong from Indiana’s economic nexus standard (IC 6-2.5-2-1). The removal took effect retroactively from 1 January 2024.

Before the change, a remote seller or marketplace facilitator had to register and collect Indiana sales tax if it met either a revenue test or a 200-transaction test. Now the only trigger is gross revenue from sales into Indiana that exceeds USD 100,000 in the current or preceding calendar year.

The Indiana Department of Revenue reissued Sales Tax Information Bulletin #89 in April 2024 to reflect the change, with an effective date of 1 January 2024 (retroactive). The bulletin says it was updated mainly to remove the language on the 200-transaction threshold. It applies to marketplace facilitators as well as remote sellers. It says that a merchant that met the 200-transaction threshold in 2023, but not the USD 100,000 threshold, may close its sales tax account in 2024 if it does not have USD 100,000 in sales in 2024. That merchant must still file all required sales tax returns for 2024. The USD 100,000 counts all revenue, whether or not the sales were taxable.

What it means

The change is in force and has not been reversed. Indiana moved five days after Wyoming, and Utah and Illinois followed. A sales-only test is now the norm among these states.

The retroactive date is the detail to watch. Because the prong was removed from 1 January 2024, transactions counted in 2023 no longer kept a seller registered in 2024. Even so, the account could not simply be abandoned: the 2024 returns still had to be filed. The USD 100,000 test counts exempt and wholesale sales too, so a seller with little taxable volume can still be inside it.