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.

How to Combat Ag’s Downward Trends

10 Steps for Leaner and Greener Financials Weak commodity prices and an international trade war have inflicted pain on American agriculture – at a ...

Your Land. Your Terms. Your Profits.

Perception vs. Reality of Diversifying Land for Revenue Source Your land is the foundation on which you – and your family – have built your lega...

8 Ways to Prep your Farm Business for 2019

Tackle these worthwhile tasks now for a more productive year ahead The end of the year is a smart time to prepare your ag business for the coming ye...

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Your email address will not be published.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>