Because the Supreme Court transformed a long-established sales tax law in the Wayfair Inc. ruling, it means states can enforce sales tax collection from remote sellers as well as from in-state businesses. Prior to the ruling, states were largely limited to taxing businesses with a physical presence in the state.
Today, more than 30 states adopted economic nexus since the Wayfair decision, so merchants must determine where they have economic nexus: enough economic activity in a state to trigger the obligation to collect and remit tax. For example, $100,000 in sales or 200 transactions in the current or preceding calendar year. As such, businesses and the tax and accounting pros advising them must keep up with registration and remittance requirements.
It’s not an easy task. On Jan. 1 2019 alone, economic nexus laws took effect in Georgia, Iowa, Nebraska, Utah, West Virginia and the District of Columbia.
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by Gail Cole
March 22, 2019