Multi-State – New Sales Tax Rules Take Effect This Week In More Than A Dozen States

If you made a purchase on the internet yesterday, you might have noticed something different: sales tax. Changes in sales tax compliance laws for remote sellers and marketplace facilitators in more than a dozen states kicked in beginning October 1, 2019. More than 40 states have tweaked their sales tax laws since a 2018 Supreme Court Ruling.

That ruling in South Dakota v. Wayfair, Inc.,, Inc., and Newegg, Inc. —sometimes just referred to as Wayfair—focused on whether physical presence requirement for sales tax should stand. The idea that you could only impose sales tax on sales where a retailer maintained a physical presence in a state had previously been established in National Bellas Hess, Inc. v. Department of Revenue of Ill., 386 U. S. 753 and was affirmed in Quill Corp. v. North Dakota (91-0194), 504 U.S. 298 (1992). But the advent and growth of internet sales complicated the issue: When Quill was decided fewer than 2% of Americans had access to the internet. As states pushed to expand sales tax requirements to online sales, retailers pushed back. That led to what’s been called the “tax case of the millennium.” In Wayfair, the Supreme Court essentially killed Quill, ruling that states have broad authority to require online retailers to collect sales taxes.

For the full story: Forbes

Kelly Phillips
Oct 2, 2019