Last year, the U.S. Supreme Court upended the traditional rules of sales tax collection when it decided the case South Dakota v. Wayfair, Inc.
“This decision, and the states’ reaction to it, have turned sales tax law upside down and inside out,” said Diane Yetter, founder of the Sales Tax Institute. “So it’s completely different from the history going back to the 1920s, 1930s when sales tax was first enacted.”
It used to be that companies were only required to collect sales tax in states where they had a substantial physical presence. “So the easy way to think about that is where did you have a store, an office, a manufacturing plant, a warehouse? It also was where you would have your employees,” Yetter said.
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september 19, 2019