On June 21, 2018, the United States Supreme Court handed down its long-awaited decision in South Dakota v. Wayfair, sweeping aside more than fifty years of Supreme Court jurisprudence in a 5-4 decision that will ultimately subject internet retailers to sales taxes in states where they have no physical presence.
ACTION: The Court assumes software tools will help simplify tax collection and other cumbersome tasks that may arise; however, those tools don’t yet exist. Companies should review their sales and use tax compliance policies and analyze all sales made to customers in jurisdictions where the Company has no physical presence, especially since the Court did not specifically address retroactive application. The Court’s decision to overturn Quill means that companies are now at risk for non-compliance with a patchwork of tax laws cobbled together over 10,000 state and local tax jurisdictions, many of which have actively worked to broaden the scope of their tax collecting authority.
Learn more about the decision and its business and state impacts in our June Tax Alert.
Please contact Joe Hunt to learn more.