Multistate – Why Wayfair Isn’t Fair Steven MalangaJune 26, 2018

“The real danger for merchants and consumers, however, is what comes next. The Wayfair decision may encourage some aggressive states (California and New York come to mind), and some states desperate to collect more taxes (New Jersey, Connecticut, and Illinois, for instance) to try to squeeze much more in revenue out of this ruling than South Dakota did. That’s because Kennedy’s opinion doesn’t use the South Dakota legislation as a standard for what constitutes a merchant’s tax “nexus”—that is, the point at which a state can start taxing a retailer. What Wayfair mainly does is admit that the old standard of physical presence is no longer adequate, which means that states can now set a much lower threshold for when they can start requiring a merchant to collect taxes.”

Why Wayfair Isn’t Fair