South Dakota v. Wayfair
Background
On June 21, 2018, The United States Supreme Court ruled 5-4 in South Dakota v. Wayfair that states can mandate that businesses without a physical presence in a state with more than 200 transactions or $100,000 in-state sales collect and remit sales taxes on transactions in the state. This decision overturned the Court’s 1992 decision in Quill v. North Dakota and 1967 decision in National Bellas Hess. Since the decision was handed down by the Court, states and retailers alike have been asking “What’s next?”
Featured AICPA Resources
Webinar Archive: Navigating a Changing Sales & Use Tax Environment
State Tax Guide for Businesses and State Tax Guide for Individuals
(Open to Tax Section members)
State Tax Checklist
(Open to Tax Section members)
State Tax Nexus Guide
(Open to Tax Section members)
More resources
Charts, maps, and guides
- State notices and resources for remote sellers
- State guides and remote seller nexus rules chart
- Remote seller nexus chart, economic nexus state guide, FAQs
- Remote seller nexus by state (map, thresholds chart, next steps) and state by state guide to sales tax nexus rules
- States follow South Dakota: a by-state guide on economic nexus
- Remote sales tax collection (NCSL – overview, state action, legislation, marketplace collection, SSUTA, revenue, nexus, and map)
Articles
- Recent nonstatutory state reactions to Wayfair, The Tax Adviser, Feb. 1, 2020
- Practical implications of the Wayfair decision, The Tax Adviser, Dec. 1, 2019
- Wayfair’s impact on not-for-profit purchases and revenues, The Tax Adviser, Oct.1, 2019
- M&A considerations in light of Wayfair, The Tax Adviser, Aug. 1, 2019
- Sales tax compliance post-Wayfair, The Tax Adviser, Aug. 1, 2019
- New York’s response to Wayfair: Storms on the horizon? The Tax Adviser, June 1, 2019
- The Supreme Court’s online sales tax ruling is already a huge headache for small businesses, March 19, 2019
- Wayfair and economic nexus for foreign sellers, March 1, 2019
- Professional Liability Spotlight: Addressing risks related to the TCJA and Wayfair, Journal of Accountancy, Feb. 2019
- Supreme Court abolishes physical presence requirement for sales tax collection, The Tax Adviser, Sept. 1, 2018
Congressional legislation and AICPA comments
- AICPA written testimony and oral testimony for Mar. 3, 2020, hearing of House Small Business Committee Subcommittee on Economic Growth, Tax and Capital Access on Wayfair small business impact
- Online Sales Simplicity and Small Business Relief Act, H.R. 1933, introduced March 27, 2019, and S. 2350, introduced July 31, 2019
- Stop Taxing Our Potential Act, S. 128, introduced Jan. 15, 2019, and H.R. 5515, introduced Dec. 19, 2019
- Protecting Businesses from Burdensome Compliance Cost Act, H.R. 379, introduced Jan. 9, 2019
- AICPA comments and testimony on Multistate Tax Commission (MTC) Draft Model Sales and Use Tax Notice and Reporting Statute, April 25, 2018
- AICPA comments on the Marketplace Fairness Act of 2013, Sep. 10, 2013
Reviewed March 8, 2020
