New Sales Tax Collection Requirements
December 26, 2018

The U.S. Supreme Court turned the sales tax world upside down when it handed down its decision in South Dakota v. Wayfair – the case that challenged the imposition of sales taxes on remote sellers that lacked a physical presence in state. The good old days when states were prohibited from imposing sales and use taxes on businesses that did not have a physical presence in the state are gone! In today’s world, states can impose their sales and use taxes based on a business’ economic presence in the state.

What This Means for Your Business

Wayfair will impact any business selling goods or providing services across state lines. Businesses will no longer be able to control their sales tax exposure by managing where they have a physical presence, and will need to begin closely monitoring their economic activity in any state. While the thresholds vary from state to state, in most states sellers with over 200 transactions or $100,000 of sales to in-state purchasers will be required to collect and remit state and local sales taxes.

There are more than 10,000 sales tax jurisdictions in the United States between state, county, city and district levels; each with its own rules for how and when sales taxes should be collected. Miller Cooper has sales tax professionals with multistate experience ready to help. For more information, please contact a member of your Miller Cooper team at 847-205-5000.   

The U.S. Supreme Court turned the sales tax world upside down when it handed down its decision in South Dakota v. Wayfair – the case that challenged the imposition of sales taxes on remote sellers that lacked a physical presence in state. The good old days when states were prohibited from imposing sales and use taxes on businesses that did not have a physical presence in the state are gone! In today’s world, states can impose their sales and use taxes based on a business’ economic presence in the state.

What This Means for Your Business

Wayfair will impact any business selling goods or providing services across state lines. Businesses will no longer be able to control their sales tax exposure by managing where they have a physical presence, and will need to begin closely monitoring their economic activity in any state. While the thresholds vary from state to state, in most states sellers with over 200 transactions or $100,000 of sales to in-state purchasers will be required to collect and remit state and local sales taxes.

There are more than 10,000 sales tax jurisdictions in the United States between state, county, city and district levels; each with its own rules for how and when sales taxes should be collected. Miller Cooper has sales tax professionals with multistate experience ready to help. For more information, please contact a member of your Miller Cooper team at 847-205-5000.   

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