What's The Impact to Avalara Interface When A New State Become Taxable ?

What's The Impact to Avalara Interface When A New State Become Taxable ?

Release Date: 5/6/2026
Version: 8.6 & up

Q - We received an email from Avalara indicating the state of Minnesota is now taxable due to the "nexus" rule.  I understand that all the MN customers and Ship To have to be Taxable = Y.  I also plan to run the followings in Elliott:

  1. Update Tax codes
  2. Update Use codes
  3. Update Zip tax codes
  4. Create/update State tax codes
  5. Update customer tax codes
  6. Update Ship to tax codes

My concern is about Ship-To that are added on the fly in order entry (no ship to code, just address) where the Ship To is MN for customers with Sales Tax Y (customer address in NY).  Do I have to do anything else?

A - You should not need to run create/update State tax codes, update customer tax codes, or update Ship to tax codes. These should already be set.

 You should already be running update Tax codes, update Use codes and  update Zip tax codes on a monthly basis.

 If the customer is set as taxable and the override the ship-to address without using a ship to code, it should process it as taxable. I assume that you have Minnesota set up in the Avalara portal as a state where you collect taxes. As long as this is the case, it should work. Make sure you have the portal setup correctly for the retail delivery fee. If the sales in Minnesota is over 1,000,000 and the order total before taxes is $100 or more (the threshold is setup in Global Setup), you must impose a retail delivery fee.  You need check your Avalara portal settings and verify this is setup up properly.

If you need to collect the retail delivery fee, you should review this knowledgebase article for the changes that are required in Elliott: https://support.netcellent.com/portal/en/kb/articles/feature-minnesota-sales-tax-retail-delivery-fee-rdf-support-25-10-2024

CLS/EMK

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