Sales tax compliance after Wayfair – “Heads up!” to businesses delivering products or services out of state

Description

Abstract: Since the U.S. Supreme Court’s landmark 2018 decision in South Dakota v. Wayfair, most states have enacted, begun enforcing or proposed “economic nexus” statutes. These statutes impose sales tax collection obligations on out-of-state sellers based on their economic activities in the state, regardless of whether they have a physical presence in that state. This article discusses the effects of Wayfair, including the concept of “nexus” and steps that businesses must take to comply with state laws.