South Dakota v. Wayfair, Inc. – What this sales tax case means for nonprofits

Description

Abstract: A 2018 landmark ruling by the U.S. Supreme Court dramatically expanded the ability of states to impose sales tax collection obligations on out-of-state organizations that sell goods and services within their boundaries. Since then, state legislatures and municipalities have scrambled to pass laws targeting organizations that lack a physical presence in their jurisdictions. This article discusses how these laws could ensnare nonprofits that make taxable sales to those states — even if similar sales aren’t taxable in their home states.