Ruling on Taxing Online Purchases Looks Promising for States

Share this

In a rather monumental decision, the U.S. Supreme Court case of South Dakota vs. Wayfair, Inc. overturned the Quill case, stating that a physical presence is no longer required to establish substantial nexus in the collection of sales and use tax.

The Court held that physical presence was not necessary to establish nexus with the taxing state, that it created market distortions, and that it imposed an arbitrary, formalistic conflict.

Is this a Game Changer for States?

In overwhelming consensus, experts believe that all indicators are showing that this decision will hold up.  What does this mean for businesses?

For now, businesses should consider the quantity of sales into states in which they do not have physical presence.  As the states react to the Wayfair decision, knowing the actual sales in each state will be beneficial in interpreting a business’ need to collect and remit sales tax on a state by state basis.

K·Coe Isom will be monitoring the forward momentum of individual states and Congress following this decision, and will provide ideas on how to be proactive with these changes.

Contact a K·Coe Isom tax advisor specialized in state tax issues and changes to assess your business’ considerations.

Midyear Tax Checkup Pays Off for Manufacturers

Perfect time to see how new tax laws could impact your business when you file for 2018 taxes The new provisions for 2018 have changed a multitude of ...

Are You Correctly Tracking Business Deductions for Meals and Entertainment?

Businesses of all sizes and across all industries need to be aware that the deductions for 2018 meals and entertainment have changed following tax ref...

Farm Bill Passes with Good Measure

Welcome News for Ag Overall; Eyes on Crop Insurance and Farm Eligibility Going Forward Following a 86-11 vote in the Senate, the farm bill has receiv...


Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

*