Multi-State – Wayfair Court Case Marks A Game-Changer For Legal Cannabis

When most consumers think of Wayfair Inc, it is in terms of furniture and home goods, but Wayfair has now made its way into the cannabis sector. Wayfair refers to the U.S. Supreme Court case, South Dakota v. Wayfair, Inc., in which the court ruled that states may charge tax on purchases made from out-of-state sellers, even without the seller’s having a physical presence in the taxing state.

That decision attempts to reflect the modern economy, in which e-commerce is growing at a faster pace than traditional brick-and-mortar retail, and strives to level the playing field between remote sellers (e-commerce) and those with physical presences.

Since the cannabis industry operates exclusively within individual states and is prohibited from transacting across state lines, multistate tax-nexus issues have not to date been a primary concern. However, passage of the 2018 Farm Bill and the subsequent explosion of hemp and cannabidiol (CBD) online sales nationwide, state sales tax issues have become much more complicated.

For the full story: Benzinga

By krista Schipp
October 21,2019