The South Dakota v. Wayfair Supreme Court decision held that states may require businesses to collect and remit sales tax even if the business has no in-state physical presence. Wayfair changed a remote seller’s considerations from “do I have physical presence” to “how do I comply with all the state and local jurisdictions where my products or services are delivered?”

The decision has broad impacts on states, e-commerce sellers, digital service providers, consumers, and buyers and sellers of businesses. Companies must understand how their products and services are taxed in all the states in which they are sold and create a system that tracks this activity. Now may be the time to consider sales tax automation software to help ensure compliance with state and local laws, and to more efficiently report and remit taxes. 

Economic Nexus Standards by State

Most states have enacted sales/use tax economic nexus statutes. Click on a state below to see the thresholds and enforcement dates. Use the toggle feature above the map to switch between remote seller rules and marketplace facilitator rules.

Material discussed is meant to provide general information and should not be acted on without professional advice tailored to your needs.

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