Multi-State – The Ultimate Guide to States With Laws Requiring Collection Of Internet Sales Tax

As of June 21, 2018, the United States Supreme Court changed the laws regarding the collection of sales tax by internet sellers. The Supreme Court ruling in South Dakota v. Wayfair Inc., established that individual states can require ecommerce retailers to collect state sales tax on the goods they sell. The ruling overturned previous law which made the consumer responsible for paying sales taxes to the state, rather than through the retailer.

The former legislation meant that states were only able to tax sales by businesses which had a physical presence in the state. In the wake the new legislation, retailers that have an economic activity — known as an economic nexus — in a state can be obliged collect sales tax.

If you sell items online, it is important you keep track of the different rules for different states, as each state has its own rules and procedures for the collection of internet sales tax.

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by Gabrielle Pickard-Whitehead
January 16, 2019