Wayfair v. South Dakota: 5 Years Later Update
Wayfair v. South Dakota was a landmark case that clarified how sales tax is determined and collected. Brought about by a group of online retailers that challenged a South Dakota law, the case has had major impacts on how state and local jurisdictions throughout the U.S. establish physical presence or nexus. Since the initial ruling of the Supreme Court case, states have begun to set up their own sales tax laws.
On this episode of the Tax Beat Podcast, Brooks Nelson, Partner and Strategic Tax Leader, and Sarah McGregor, Tax Director, discuss the Wayfair decision’s lasting impact with Cathie Shaw, State and Local Tax Practice Leader, and Lauren Stinson, Sales and Use Tax Team Leader.
This conversation includes:
- 03:01 – Impressions of Wayfair v. South Dakota oral arguments
- 04:05 – Changes over the last five years
- 05:17 – Industry impacts of Wayfair
- 07:38 – States that have adopted economic nexus
- 10:44 – Technology created to handle Wayfair
- 12:28 – Nexus enforcement
- 14:47 – Impact on income and franchise tax
- What Tech Companies Overlook in Sales Tax Reporting
- Start the Year Reviewing Your Economic Nexus Thresholds
- The Wayfair Decision – Three Years Later
- eCommerce Sales Tax Collection