River
Y CombinatorBacked by Y Combinator
FREE TEMPLATE

Sales Tax Nexus Study Template

No two states measure the same twelve months. This one measures your actual sales on each state's own window, and names the month you crossed.

Free download  ·  No account needed

Threshold Tracker

[Company] — measured at [__ ___ 20__]

The window is a required column. A state figure with no window against it is not a measurement of anything.

StateDollar thresholdSales thresholdTestMeasurement windowMeasured on that windowSales countHeadroom or excessMonth crossedCollection due from
[State]Dollars onlyPreceding or current calendar yearn/a
[State]Dollars onlyRolling twelve calendar monthsn/a
[State]Both prongs requiredFour sales tax quarters
[State]Dollars onlyCurrent or prior calendar yearn/a

Three reasons a sales by state report cannot answer this

Every state picks its own windowFour different twelve months already appear in a five state book
Some states want a transaction countAnd a wholesale book clears one prong by miles and misses the other
Crossing and owing are different datesOne state gives until the first day of the fourth month after crossing

Fill the window column first. Every number to the right of it depends on which twelve months you measured.

A sales by state pivot gives one number per state over one period, and no state uses that period. California reads the preceding or current calendar year. Texas reads a rolling twelve calendar months. New York reads the immediately preceding four sales tax quarters, which end in February, May, August and November rather than in March, June, September and December. Same sales, four different twelve months, four different answers. Getting the window wrong produces the wrong verdict in both directions.

Larkspur Provisions Co. shows 446,000 dollars of Texas revenue for 2026 and 470,000 for 2025, both comfortably inside the 500,000 dollar safe harbour. On the rolling twelve months Texas actually uses, they crossed in March 2026 at 511,000. Collection was due from 1 July, because a seller must begin no later than the first day of the fourth month after the month of crossing. Five months at 8.00 percent is 14,400 dollars nobody collected, and it grows by 2,560 a month.

The pivot gets it wrong in the other direction too. New York is the largest state in the book at 770,000 dollars and carries no obligation. The state wants more than 500,000 dollars and more than 100 sales in the same window, and 84 wholesale orders is not more than 100. Registering there anyway buys a quarterly return and a history to unwind. Pair this with the client filing calendar and the tax notice responder.

Four of the sheets, filled in for one review

Measurement Windows, Threshold Tracker, Marketplace Split and Exposure by State.

Measurement Windows

Larkspur Provisions Co., an illustrative seller, reviewed 30 November 2026. Each state measured on its own window, beside what a calendar pivot would have said.

StateThe state's own windowDates appliedMeasured on that windowThresholdResultCalendar 2026 to NovPivot verdict
TexasRolling twelve calendar months2025-04 to 2026-03511,000500,000Crossed March 2026446,000Wrong. Misses a crossing eight months old
TexasRolling twelve calendar months2025-12 to 2026-11508,000500,000Still over at the review date446,000Wrong
CaliforniaPreceding or current calendar yearCalendar 2025612,000500,000Crossed November 2025540,000Right, for the wrong reason. The 2025 year did it
New YorkFour sales tax quarters2025-12-01 to 2026-11-30770,000 on 84 sales500,000 and 100 salesDollar prong met, sales prong failed696,000Wrong. Biggest number in the book owes nothing
WashingtonCurrent or prior calendar yearCalendar 2026118,400100,000Crossed October 2026118,400Right
IowaGross revenue including marketplaceCalendar 2026116,000100,000Crossed on the combined figure61,200 directWrong. Marketplace revenue is in the measure
FloridaPrior calendar yearCalendar 202544,400100,000Under53,700Right
IllinoisPreceding twelve month period2025-12 to 2026-1176,500100,000Under, 23,500 of room70,800Right

The pivot got two of the five that matter backwards, and both errors are expensive. Texas looks 54,000 under and crossed eight months before the review. New York looks like the biggest exposure in the company and is the one state on the list with nothing owing.

Threshold Tracker

One row per state with activity. The measurement window and the test type are required fields, and states under the threshold stay on the sheet with their headroom stated.

StateDollarsSalesTestWindowMeasuredCountHeadroom or excessStatusCrossedCollection due fromMonths
California500,000noneDollars onlyPreceding or current calendar year612,000n/a112,000 overRegistered2025-112025-110
Texas500,000noneDollars onlyPreceding twelve calendar months511,000n/a11,000 overNot registered2026-032026-07-015
New York500,000more than 100Both prongs requiredImmediately preceding four sales tax quarters770,00084Dollars over, sales 17 shortNo obligationnonen/a0
Washington100,000noneDollars onlyCurrent or prior calendar year118,400n/a18,400 overNot registered2026-102026-102
Iowa100,000noneDollars, marketplace includedCalendar year gross revenue116,000n/a16,000 overNot registered2026-102026-102
Florida100,000noneDollars onlyPrior calendar year44,400n/a55,600 of roomMonitornonen/a0
Illinois100,000noneDollars onlyPreceding twelve month period76,500n/a23,500 of roomWatch closelynonen/a0
Oregonn/an/aNo general sales taxn/a46,400n/an/aNo obligationnonen/a0

Illinois is the row people delete. It is 23,500 under on a window that advances every month, which makes it the only state on the sheet with a knowable crossing date rather than a discovered one.

Marketplace Split

Some states count marketplace sales toward the threshold even though the marketplace collects the tax on them. The measure and the collection base are two different numbers.

StateDirect salesMarketplace salesCombinedThresholdCrossed on combinedWould have crossed on direct aloneCollect on
Iowa61,20054,800116,000100,000YesNo. 38,800 shortDirect sales only
California431,000109,000540,000500,000YesNo. 69,000 shortDirect sales only
Washington96,70021,700118,400100,000YesNo, by 3,300Direct sales only
Texas412,00034,000446,000500,000Crossed on the rolling twelve insteadn/aDirect sales only
Florida44,3009,40053,700100,000NoNoNothing yet
Illinois58,90011,90070,800100,000NoNoNothing yet
TOTAL1,104,100240,8001,344,900   Marketplace is 17.9% of the book

Iowa is the clean case and it is worth reading twice. Direct sales are 38,800 short of the threshold on their own. Marketplace revenue that Larkspur will never collect a cent of tax on is what put the company over the line, and the obligation that follows attaches only to the smaller, direct half.

Exposure by State

Priced from the date collection was due, not from the date of crossing. Where a rate is not confirmed from the state's own material, the cell says so rather than guessing.

StateMonthSales that monthState rateLocal rateCombinedTax that should have been collectedRunning total
Texas2026-0740,0006.25%1.75%8.00%3,200.003,200.00
Texas2026-0838,0006.25%1.75%8.00%3,040.006,240.00
Texas2026-0936,0006.25%1.75%8.00%2,880.009,120.00
Texas2026-1034,0006.25%1.75%8.00%2,720.0011,840.00
Texas2026-1132,0006.25%1.75%8.00%2,560.0014,400.00
Texas subtotal5 months180,000  8.00%14,400.0014,400.00
Washington2026-10 to 1123,900confirmconfirmconfirmnot pricednot priced
Iowa2026-10 to 1111,900confirmconfirmconfirmnot pricednot priced
New Yorkn/a0n/an/an/a0.000.00

The rate is the state rate plus the single local use tax rate that the Texas Comptroller makes available specifically to remote sellers. Uncollected tax is owed by the seller, and there is no practical route to invoicing a consumer in December for tax on an order placed in July, so the whole 14,400 comes out of margin.

What's in the pack

01

Measurement Windows sheet

Each state's own window applied to your own sales, with what a plain calendar pivot would have said next to it and every disagreement between the two marked.

02

Threshold Tracker sheet

Threshold, transaction prong, test type, window, the measured figure, headroom or excess in dollars, the month you crossed and the date collection was actually due.

03

State Activity Register sheet

Sales by destination state and month with transaction counts and the channel split, plus rows for inventory locations, remote staff and trade shows that no sales report contains.

04

Marketplace Split sheet

Direct against marketplace by state, because Iowa counts marketplace sales toward the threshold while the marketplace collects on them, so the measure and the collection base differ.

05

Exposure by State sheet

Month by month from the date collection was due, with a running total and the rate basis on every row. Unconfirmed rates stay blank rather than becoming estimates.

06

Registration Status sheet

A decision per state with the date, the owner, the target and the one open question blocking the next step. States with no obligation get a row and a reason.

07

How Each State Measures

The four windows already present in a five state book, why a pivot gets two of them backwards, and why crossing a threshold and owing tax are different dates.

08

What Counts in the Measure

Gross rather than taxable, related party aggregation, marketplace revenue you will never collect on, and why physical presence is still an independent trigger.

09

Nexus Memo and Decision Note

The memo for the board and outside counsel, plus the four available answers per state and what decides between registering now and going to a voluntary disclosure.

10

Space rule

Measure each state on its own clock. It governs every prompt here, and it is why no state enters the tracker without its window and its authority named.

How to use it

  1. 1

    Open in River, or download it

    Open the pack in River and let the agent measure your own sales, or download the blank Word and CSV files instantly with no account.

  2. 2

    Send two years by state

    Sales by destination state by month with transaction counts, marketplace split out where you have it. An order export or a revenue schedule both work.

  3. 3

    Measure on each state's clock

    The window comes from the state, not from your reporting calendar. Then the crossing month gets found by walking the window forward rather than reading a year-end total.

  4. 4

    Price it and decide per state

    From the date collection was due, month by month, with a running total. Then a decision per state, including the states where the decision is to do nothing.

Frequently asked questions

Is this template free?

Yes, all of it. Word documents and CSV sheets, no signup, no card. Edit with AI is a separate optional route for anyone who would rather hand over an order export than retype it. Everything else River publishes sits in the template library.

Why can't I just use a sales by state report?

Because it gives one number per state over one period and no state uses that period. In the worked review a calendar pivot missed a Texas crossing that was eight months old and flagged New York, the largest state in the book, as the biggest problem when it owed nothing.

Do marketplace sales count toward the threshold?

In some states yes, even though the marketplace collects the tax on them. Iowa is explicit about it. In the worked review 61,200 dollars of direct Iowa sales were 38,800 short on their own, and 54,800 dollars of marketplace revenue pushed the company over.

Is crossing the threshold the date I start owing tax?

Not always. Texas gives until the first day of the fourth month after the month you exceed the safe harbour, so a March crossing means collection from 1 July. Using the crossing date instead would have overstated the exposure by three months of sales.

Should I just register everywhere to be safe?

Registering somewhere with no obligation buys a filing requirement that continues whether or not sales do, plus a trailing history that is harder to unwind than to avoid. The decision sheet records a reason for every state, including the ones deliberately left alone.

Does this replace a state and local tax adviser?

No. It measures and schedules, and it stops there. Product taxability, rates, sourcing and exemption certificates all stay with an adviser, and the register exists so that adviser starts from a measured position rather than from a raw export.

How does this fit with the rest of the tax work?

The client filing calendar carries the annual and quarterly filings alongside it, the tax notice responder handles a state notice if one arrives, and the monthly close pack is where the underlying revenue gets closed.

Find the crossing before the state does

Download the blank pack as Word and CSV files, or open this exact pack in River and let the agent measure your own sales.

Edit with AI