Sales Tax: Wayfair Decision
Your state tax resource to navigate the Wayfair decision’s impact on U.S. sales tax for online businesses.
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Bloomberg Tax Research
Bloomberg Tax Research provides comprehensive state coverage with expert analysis and tools such as the state tax chart builders to help you understand the state treatment of everything from corporate income tax and sales tax, to real property tax and nexus.
Wayfair Watch: Navigating Wayfair Case Implications
Our Wayfair Watch page helps you navigate and understand the complexity of complying with the states’ emerging 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, who are expected to comply with South Dakota’s economic nexus law beginning Jan. 1, 2019.
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. A year later, 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
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