A common misconception about the Wayfair ruling is that it only affects online sales or e-commerce businesses. Unfortunately, this is not the case. Any business that ships or performs services remotely into a state is subject to the new economic nexus standard. Each state is free to put in place their own economic nexus rules with the common threshold adoption being sales of over $100,000 or 200 transactions in a 12-month period into a state creating a sales tax collection requirement for that state. Many art dealers and galleries are finding themselves having to be compliant in multiple states due to only a handful of transactions being shipped into economic nexus states. Currently, over 30 states have enforceable economic nexus rules with many more states to enforce their economic nexus rules later this year. We expect most, if not all states, to have a form of economic nexus by the end of 2019.
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