On June 21, 2018, the U.S. Supreme Court handed down a historic decision in the sales and use tax nexus case South Dakota v. Wayfair, Inc.
The 5–4 ruling overturns physical presence standards upheld in previous cases, such as Quill Corp. v. North Dakota (1992) and National Bellas Hess Inc. v. Department of Revenue of Illinois (1967), where a business had to have a physical presence in a state for that jurisdiction to impose sales and use tax collection obligations on the business.
The Court’s decision in Wayfair will affect companies that have an economic presence in a state if that presence meets that state’s nexus standard under the Court’s new ruling. If you’d like to discuss the impact of the case on your business, please call our office today.