Kentucky drops the 200-transaction economic nexus test from 1 August 2026

What changed in detail

House Bill 757 of Kentucky’s 2026 Regular Session amends KRS 139.340 so that the economic nexus standard for remote retailers and marketplace providers rests on a sales-volume threshold alone. The alternative 200-transaction trigger, which had stood since Kentucky adopted post-Wayfair nexus, is removed. The surviving test is the USD 100,000 sales threshold in KRS 139.340.

The measure takes effect 1 August 2026. HB 757 is an omnibus revenue bill whose Legislative Research Commission record notes it as “EFFECTIVE, in part, August 1, 2026, and January 1, 2027; RETROACTIVE, in part to January 1, 2020; EMERGENCY” — so the August date attaches to this provision rather than to the whole Act.

On the enactment route, note the correction recorded in issue 2026-W31: HB 757 was not signed by the Governor. It was delivered to the Governor on 2 April 2026, line-item vetoed on 13 April 2026, and the General Assembly overrode those vetoes on 14 April 2026, the same day the bill was delivered to the Secretary of State as Acts Chapter 161. See the enactment-route correction →.

What it means

This is one of the few nexus changes anywhere that reduces the registered population. Sellers of low-value, high-volume goods — digital downloads, consumables, small parts — routinely cross 200 Kentucky transactions while sitting well under USD 100,000 of Kentucky revenue, and those sellers may now fall out of Kentucky nexus entirely.

Falling out is not automatic housekeeping. Deregistration has its own procedure and its own trailing-return obligations, and a seller who stops collecting before confirming they are below the revenue test has simply created an under-collection exposure. Run the revenue-only test against the same lookback period your engine already uses, then decide; do not infer the answer from the transaction count you were previously tracking.