United States

Wyoming becomes latest state to challenge Quill

Enacts economic sales and use tax nexus statute


On March 1, 2017, Wyoming Gov. Mead signed into law House Bill 19, requiring remote sellers with no physical presence in Wyoming to register, collect and remit sales taxes on sales to Wyoming customers. The bill is scheduled to become effective on July 1, 2017.

House Bill 19 adds a new provision to the Wyoming sales and use tax statutes providing that remote sellers that meet either of the following criteria, in the current or previous calendar year, shall remit sales tax and follow all applicable procedures as if the remote seller had a physical presence in the state:

  1. The seller’s gross revenue from the sale of tangible personal property, admissions or services delivered into Wyoming exceeds $100,000
  2. The seller sold tangible personal property, admissions or services delivered into Wyoming in 200 or more separate transactions

These requirements are almost identical to those requirements enacted by South Dakota in early 2016—the first state to directly challenge Quill  through legislative action. The South Dakota law was effective May 1, 2016, but is currently stayed pending litigation in a state court.

Also similar to the South Dakota legislation, House Bill 19 provides that if the Wyoming Department of Revenue files an action to obtain a declaratory judgment that the obligation of a remote seller is to remit sales taxes under the new provisions, then that action will operate as an injunction of the law during the pendency of the litigation. The litigation in the South Dakota case was originated by a declaratory judgment action by the South Dakota Department of Revenue. For more information on the South Dakota economic sales and use tax nexus law and litigation, please read our alert, South Dakota takes aim at Quill.


In addition to Wyoming and South Dakota, several other states have taken statutory or regulatory action challenging Quill.

  • The Alabama Department of Revenue promulgated a regulation effective Jan. 1, 2016, requiring remote sellers with over $250,000 of sales into Alabama to collect and remit sales taxes on those sales. For more information on the Alabama regulation, please read our alert, Alabama’s economic sales and use tax nexus regulation challenged.
  • The Tennessee Department of Revenue recently promulgated a regulation requiring remote sellers without physical presence to register by March 1, 2017, and begin collection by July 1, 2017. That regulation must be finally approved by the Tennessee General Assembly. For more information on the Tennessee regulation, please read our alert, Tennessee finalizes economic nexus sales tax rule.
  • Vermont enacted a statute similar to South Dakota that becomes effective the later of July 1, 2017, or after the U.S. Supreme Court or federal legislation abrogates the physical presence requirement established by Quill. For more information on the Vermont statute, please read our alert, Vermont continues the assault on Quill.

Several other states have introduced economic sales and use tax nexus bills this legislative session including Arkansas (which has since died in committee), Georgia, Indiana, Maryland, Mississippi, Nebraska, North Carolina, North Dakota and Utah, among others.

Finally, federal legislation addressing remote sales tax collection could ultimately impact the operation of these economic sales and use tax nexus laws. However, federal remote seller proposals have made little legislative progress in Congress the last few years. Remote sellers making over $100,000 of sales or 200 or more separate sales into the state should be prepared to consider sales and use tax registration in Wyoming and speak to their tax advisors about the timing of such registration obligations.


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