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Sales Tax Economic Nexus Tracker for Online Sellers After Wayfair: State Threshold Table, Measurement Periods, Marketplace Facilitator Sales Treatment, Registration Order, Voluntary Disclosure Flags, and a Monthly Monitoring Routine
Turn an online seller's sales by state into a nexus action plan: compare each state's economic nexus threshold and measurement period from your own research, decide whether marketplace sales count toward the threshold, rank which states to register in first, flag past exposure that may need a voluntary disclosure agreement, and set up a monthly check so you register before collecting, not after.
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Prompt
Act as a sales tax compliance analyst for ecommerce brands who has run economic nexus studies since the 2018 South Dakota v. Wayfair decision, and knows that most mistakes come from counting the wrong sales against the threshold or collecting tax before registering. Inputs: - Sales by state for the last two calendar years and the current year to date, split into direct site sales and marketplace sales (Amazon, Etsy, Walmart): [SalesByState] - Transaction counts by state if you have them: [TransactionCounts] - State thresholds, measurement periods, and whether marketplace sales count, copied from each state revenue department site with the date checked: [StateThresholds] - Where you have physical presence today (inventory, employees, office, trade shows): [PhysicalPresence] - Products sold and anything that may be exempt or taxed differently (clothing, food, digital goods): [ProductTaxability] - Output format: [Format] Generate: 1. A threshold table using only StateThresholds: state, dollar threshold, transaction threshold if any, whether it is gross, retail, or taxable sales, measurement period (prior calendar year, current year, or rolling 12 months), and whether marketplace sales count. Any state without a row is marked "NOT RESEARCHED" rather than filled in from memory. 2. A nexus test for each state from SalesByState and TransactionCounts: the sales counted under that state's rule, the result (over, near at 80 percent or more, under), and the date the threshold was crossed if it was. 3. Marketplace facilitator treatment: the marketplace collects and remits on its own sales in most states, but those sales may still count toward your threshold. Show the test both ways where StateThresholds is unclear and mark "confirm with the state". 4. Physical presence nexus from PhysicalPresence, including inventory stored in a third party warehouse, listed separately because no threshold applies. 5. A registration order: states already over first, ordered by crossing date and sales volume, then states near the line. Note that you should not collect tax from customers in a state until you hold a permit there. 6. Past exposure flags: states crossed more than one filing period ago where you did not collect. Explain a voluntary disclosure agreement in plain words and mark these for a CPA or sales tax advisor. 7. ProductTaxability notes per registered state, marked "verify taxability in each state" for anything not tax at the standard rate. 8. After registration: expected filing frequency is assigned by the state, local rate and sourcing questions for home rule states, and a calendar for returns. 9. A monthly monitoring routine: export sales by ship to state, update the table, and alert at 80 percent of any threshold. Constraints: - Never state a threshold, rate, or deadline that is not in StateThresholds. This is a planning worksheet, not tax advice; recommend a CPA review before registering. - Do not total marketplace and direct sales into one number without showing both parts. No em dashes.
Instructions
Replace every [bracket] with your details before running. Works on ChatGPT, Claude, and Gemini.
Generated Output
This image was generated using the prompt above.
Examples
Example Input
SalesByState (2025 full year, direct site plus marketplace): California 410,000 direct plus 160,000 Amazon; Texas 220,000 plus 95,000; New York 300,000 plus 120,000 across 2,900 orders; Florida 88,000 plus 41,000; Washington 61,000 plus 52,000; Oregon 70,000 direct TransactionCounts: available only for New York StateThresholds (checked on state sites Sept 2026): California 500,000 sales, no transaction count, includes marketplace sales; Texas 500,000, prior 12 months, includes marketplace; New York 500,000 and more than 100 sales, prior four sales tax quarters; Florida 100,000 taxable remote sales, prior calendar year, excludes marketplace sales; Washington 100,000, includes marketplace PhysicalPresence: home office and inventory in Colorado; Amazon FBA inventory in Arizona and Pennsylvania per inventory report ProductTaxability: cotton apparel and canvas tote bags Format: tables plus action list
Example Output
1) THRESHOLD TABLE (from StateThresholds, checked Sept 2026) | State | Dollar | Transactions | Period | Marketplace counts | | California | 500,000 | None | Per input | Yes | | Texas | 500,000 | None | Prior 12 months | Yes | | New York | 500,000 | And over 100 | Prior 4 quarters | Per input, confirm | | Florida | 100,000 taxable | None | Prior calendar year | No | | Washington | 100,000 | None | Per input | Yes | | Oregon | NOT RESEARCHED | | | | Oregon has no general state sales tax as far as you know; confirm on the state site before dropping it. 2) NEXUS TEST (2025) | State | Direct | Marketplace | Counted | Result | | California | 410,000 | 160,000 | 570,000 | Over | | Texas | 220,000 | 95,000 | 315,000 | Under (63%) | | New York | 300,000 | 120,000 | 420,000 and 2,900 orders | Under on dollars (84%), near | | Florida | 88,000 | 41,000 | 88,000 | Under (88%), near | | Washington | 61,000 | 52,000 | 113,000 | Over | Crossing dates need monthly data. Pull 2025 by month for California and Washington to find the month each threshold was crossed. 3) MARKETPLACE TREATMENT Amazon collects on its own sales in these states. Florida excludes those sales from the test per your research. New York both ways: with marketplace 420,000, without 300,000; both under 500,000. Confirm with the state. 4) PHYSICAL PRESENCE - Colorado: home office and inventory. Nexus regardless of sales. Colorado has home rule local taxes; plan for local registration questions. - Arizona and Pennsylvania: FBA inventory creates physical presence in many states. Confirm with each state and a CPA. 5) REGISTRATION ORDER 1. Colorado (physical presence) 2. California (over) 3. Washington (over) 4. Arizona, Pennsylvania (FBA inventory, confirm) 5. Watch: Florida 88%, New York 84% Do not charge tax to customers in a state until the permit is issued. 6) PAST EXPOSURE California and Washington were crossed during 2025 with no collection. Colorado exposure since the business started. A voluntary disclosure agreement lets you come forward, usually limiting how far back the state looks and reducing penalties. Mark all three for a CPA or sales tax advisor before registering. 7) TAXABILITY Apparel and tote bags: taxed at the standard rate in most states, but some states treat clothing differently. Verify taxability in each state. 8) AFTER REGISTRATION Each state assigns monthly, quarterly, or annual filing. Add every due date to one calendar on the day the permit arrives. 9) MONTHLY ROUTINE - First business day: export last month's sales by ship to state from the store and each marketplace. - Update the counted column. - Alert at 80% of any threshold. Florida and New York already trigger this.