Indiana is compliant with a U.S. Supreme Court decision outlining how states can go about requiring online retailers to collect sales taxes on products sold within their borders, according to an analysis by the Washington-based Tax Foundation.
Indiana will not need to make some additional legislative changes to comply with the legal checklist handed down last summer in South Dakota v. Wayfair, the foundation's study says. Indiana has established a date (Oct. 1, 2018) to enforce its online taxation plans.
To pass legal muster, the high court suggested that states needed to establish a taxing regime that exempts retailers with limited transactions in the state; adhere to conformity rules set by the Streamlined Sales and Use Tax Agreement; and have a single sales tax administration with the state.
Twenty-three states are fully or nearly compliant with the Wayfair checklist, but the remaining states have several items out of sync with the court decision, according to the study authored by Joseph Bishop-Henchman, the foundation’s executive vice president.
Five states – Alaska, Delaware, Montana, New Hampshire and Oregon – have no sales tax.
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Which States Are Ready to Tax Online Sales?
| State | Compliance With Wayfair Checklist? | Enforcement Date Established? |
| Alabama | No; legislative changes required | Oct. 1, 2018 |
| Arizona | No; legislative changes required | No |
| Arkansas | Mostly compliant; proceed with caution | No |
| California | No; legislative changes required | No |
| Colorado | No | May, 31, 2019 |
| Connecticut | No; legislative changes required | Dec. 1, 2018 |
| D.C. | No; legislative changes required | Pending |
| Florida | No; legislative changes required | No |
| Georgia | Yes | Jan. 1, 2019 |
| Hawaii | No; legislative changes required | July 1, 2018 |
| Idaho | No; legislative changes required | No |
| Illinois | No; legislative changes required | Oct. 1, 2018 |
| Indiana | Yes | Oct. 1, 2018 |
| Iowa | Yes | Jan. 1, 2019 |
| Kansas | Mostly compliant; proceed with caution | No |
| Kentucky | Yes | Oct. 1, 2018 |
| Louisiana | No | Jan. 1, 2019 |
| Maine | No; legislative changes required | July 1, 2018 |
| Maryland | No; legislative changes required | Pending |
| Massachusetts | No; legislative changes required | In court |
| Michigan | Mostly compliant; proceed with caution | Oct. 1, 2018 |
| Minnesota | Yes | Oct. 1, 2018 |
| Mississippi | No; legislative changes required | Sept. 1, 2018 |
| Missouri | No; legislative changes required | No |
| Nebraska | Mostly compliant; proceed with caution | Jan. 1, 2019 |
| Nevada | Yes | Nov. 1, 2018 |
| New Jersey | Yes | Nov. 1, 2018 |
| New Mexico | No; legislative changes required | No |
| New York | No; legislative changes required | No |
| North Carolina | Mostly compliant; proceed with caution | Nov. 1, 2018 |
| North Dakota | Yes | Oct. 1, 2018 |
| Ohio | Mostly compliant; proceed with caution | In court |
| Oklahoma | Mostly compliant; proceed with caution | July 1, 2018 |
| Pennsylvania | No; legislative changes required | In effect before Wayfair ruling |
| Rhode Island | No; legislative changes required | In effect before Wayfair ruling |
| South Carolina | No; legislative changes required | Pending |
| South Dakota | Yes | Nov. 1, 2018 |
| Tennessee | No; legislative changes required | July 1, 2018 |
| Texas | No; legislative changes required | No |
| Utah | Yes | Jan. 1, 2019 |
| Vermont | Yes | July 1, 2018 |
| Virginia | No; legislative changes required | No |
| Washington | Mostly compliant; proceed with caution | Oct. 1, 2018 |
| West Virginia | Yes | Jan. 1, 2019 |
| Wisconsin | Mostly compliant; proceed with caution | Oct. 1, 2018 |
| Wyoming | Yes | Pending |