Sales Tax by State: Which States Require Sellers to Renew Sales Tax Permits?
by June 10, 2020
Updated October 2020
Here at the TaxJar blog we often talk about the difficult online sellers face in calculating sales tax rates then collecting and remitting sales tax. We’ve talked less often about the sales tax permits that are required by states before can even begin collecting sales tax. Some sales tax permits cost money, some are free, and some must be renewed from time to time.
For your convenience, we have compiled a list of states that require online sellers to renew their sales tax permits. Find out below if one of the states where you have sales tax nexus is on the list, and be sure your sales tax permit is current.
States that Require Sellers to Renew Sales Tax Permits
These states require anyone holding a sales tax permit to renew it periodically. Some states require the seller to take action. Others renew automatically unless a change takes place in your business. Please check with the state’s department of revenue or other authority in charge of taxation for specific renewal dates for your permit.
Alabama – The Alabama Department of Revenue (Department) announced that, beginning November 1, 2020, taxpayers will be required to renew most of their Alabama tax licenses on an annual basis. A taxpayer that fails to renew its licenses, under Ala. Code Section 40-23-6.1, may no longer use its sales-and-use-tax license to make tax-exempt purchases for resale or rental purposes. This is the first time Alabama has required license renewals. More info from the state here.
Arizona – your state TPT permit must be renewed every year by January 1st. This is free unless your business has changed location, name or DBA, jurisdiction or rental location.
Colorado – permits must be renewed every two years at a cost of $16 (Renew your Colorado sales tax permit). The next renewal periods are coming up at the end of 2017 and the end of 2019 and every 2 years thereafter.
Connecticut – Effective January 1, 2017 your sales tax permit expires every 2 years, but there is no cost to renew if the permit is active (The renewal period was formerly 5 years. Check the status of your Connecticut sales tax permit.)
Indiana – automatically renews every two years at no extra charge (Check the status of your Indiana sales tax permit)
Louisiana – renew within 30 days of the expiration date on the certificate (Check the status of your Louisiana sales tax permit)
Michigan – renews annually unless cancelled. (Check the status of your Michigan sales tax permit)
New York – the state will send you a letter informing you that you have been “selected for renewal” (Check the status of your New York sales tax permit)
Oklahoma – sales tax permit is issued on a probationary basis for six months and will be automatically renewed for 30 months. It is then renewable in three year increments as long as your account remains in good standing. (Check the status of your Oklahoma sales tax permit)
Pennsylvania – must be renewed no less than every 5 years (Renew your Pennsylvania sales tax permit)
Rhode Island – sales tax permits are good for one year and after that must be renewed every July for $10 (Renew your Rhode Island sales tax permit)
Washington – if your permit will not be automatically renewed, you will receive a notice to renew it 90 days before your permit expires
Additionally, Maryland, Idaho and South Carolina require sellers to renew temporary sales tax permits. (This use case generally does not apply to online sellers.) Some states may require you to renew your sales tax permit if you make substantial changes to your business, such as a change of ownership or change of location.
Another note: Some localities within states may also require sales tax permits. Be sure to check with your state’s taxing authority or an accounting professional to ensure that you are in complete compliance.
Need to apply for or renew your sales tax permit? Check out this list of states and how to register for a sales tax permit.
To the best of our knowledge, states that were not listed here do not require sales tax permit renewal (as of this writing). Five states do not have a statewide sale tax at all. Always be sure to contact your state’s department of revenue or a financial professional if you have questions or need advice about your business. And to learn more about TaxJar and get started, visit TaxJar.com/how-it-works.
