As we close in on April 15, taxes are high on most peoples’ minds, but businesses have been thinking about sales taxes—and how they’ll be affected—for a long time.
As you might recall, 2018 was the year the Supreme Court of the United States overruled the physical presence rule that for decades kept states from taxing remote sales. The court’s decision in South Dakota v. Wayfair, Inc. (June 21, 2018) allows states to now require a remote seller with “economic and virtual contacts” in the state (economic nexus) to collect and remit sales tax, even if it has no physical presence in the state.