Sales Taxation of Internet Transactions 5-Years-Post-Wayfair

Online retailers had largely escaped state sales and use taxes before the U.S. Supreme Court decided South Dakota v. Wayfair, Inc. in 2018. Wayfair overruled the previous physical presence test which required sufficient nexus to impose a sales tax on electronic transactions.  The decision allowed states to compel out-of-state companies to collect and remit sales and use taxes on these transactions based on where the buyer resides. Many states established a transactional threshold, post-Wayfair, but are rethinking that in favor of a minimum gross sales requirement.

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Related Content

• State Sales Tax Thresholds Post-Wayfair Still Far From Settled
  See how the Wayfair court renounced the long-standing precedent in Quill Corp. v. North Dakota, 504 U.S. 298 (1992), and National Bellas Hess, Inc. v. Department of Revenue of Illinois, 386 U.S. 753 (1967). These cases had created a bright-line physical presence test for substantial nexus before a state could impose a duty on an out-of-state vendor to collect sales or use tax.  No more!
• Sales Tax Changes After South Dakota v. Wayfair State Law Survey
  Review this survey chart which reflects those states that have enacted legislation addressing the issue of collection and remittance responsibilities of remote sellers.

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