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TaxCore: Sales Tax and the Wayfair Decision

Wayfair Watch: Navigating Wayfair case implications

Our Wayfair Watch page helps you navigate and understand the complexity of complying with emerging state economic nexus laws and rules. This powerful resource provides a roadmap developed and updated by Bloomberg Tax’s content and analysis team, news and commentary, charts, tools, resources, and more.

Wayfair sales tax decision

In South Dakota v. Wayfair, Inc., the U.S. Supreme Court struck down the physical presence nexus standard established in Quill Corp. v. North Dakota and Natl. Bellas Hess. v. Illinois Dept. of Rev. The Court vacated the judgment of the South Dakota Supreme Court, which held that the state’s economic nexus standard imposing tax collection and remittance obligations on remote sellers was unconstitutional, and remanded the case for further proceedings not inconsistent with its decision. On Oct. 31, 2018, the state reached a final settlement with all parties to comply with South Dakota’s economic nexus law beginning Jan. 1, 2019.

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Portfolio 1420-3rd: Limitations on States' Jurisdiction to Impose Sales and Use Taxes

This Tax Management Portfolio Limitations on States’ Jurisdiction to Impose Sales and Use Taxes (Portfolio 1420) explores the constitutional limitations imposed by the Commerce Clause, Due Process Clause, Equal Protection Clause, and First Amendment.

Bloomberg Tax Research

2023 State Tax Department Survey

The 2023 State Tax Department Survey provides insight into how some states are responding to digital technologies and explores corresponding trends significant to taxpayers and practitioners.

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The U.S. Supreme Court’s 2018 South Dakota v. Wayfair decision upended a 26-year precedent that limited a state’s authority to tax goods being sold across state lines. In the years since, states have amended their laws to target remote sellers and online sales platforms like Amazon.com Inc.

Bloomberg Tax Reporter Ryan Prete spoke with Diane Yetter, founder of the Sales Tax Institute and president of consulting firm Yetter Tax, to discuss the ruling’s legacy so far and possible future legal issues. She said legal challenges could begin with differing interpretations of the laws, and go as far as class-action lawsuits against sellers for not collecting the taxes appropriately.