There are 45 states (plus Washington, D.C.) that have a general sales tax, and almost all of them require out-of-state sellers that do a certain amount of business in the state to collect and remit sales/use tax. How long before the remaining few states do the same? States only recently won the right to tax remote sales. They can require a business to collect sales tax only if the business has a significant connection, or nexus, with the state. Until June 21, 2018, sales tax nexus was based exclusively on physical presence. The Supreme Court of the United States overruled the physical presence rule last year in South Dakota v. Wayfair, Inc. Physical presence in a state still triggers a sales tax collection obligation, but now states can base a sales tax collection obligation on economic activity alone (economic nexus), which is measured by sales, transactions, or both (e.g., more than $100,000 in sales or at least 200 transactions).
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July 2, 2019