State and Local Tax Services Leaders Present Webinar “Wayfair and Economic Nexus: Important Considerations for Your Business”
On Thursday, May 2, Pam Huelsman, Brown Smith Wallace Principal and State and Local Tax (SALT) practice leader; Bernie Ottenlips, SALT Principal; and Amy Jackson, SALT Manager; presented the webinar “Wayfair and Economic Nexus: Important Considerations for Your Business.”
Last June, the U.S. Supreme Court ruled that taxpayers no longer need an in-state physical presence to create sales tax nexus. The Court’s decision in South Dakota v. Wayfair raised numerous questions regarding how businesses will be impacted. States can now require an out-of-state seller to collect sales or use tax on sales to customers in that state, even though the seller lacks an in-state physical presence. As a result, having in-state customers can be sufficient to trigger economic nexus.
The impact this decision could have on a business is far-reaching, as many businesses are unaware this case and economic nexus applies to them. Prior exposure or tax risk can potentially cause serious problems for a business going forward.
During the webinar, Bernie first provided a brief overview of pre-Wayfair sales tax laws, challenges to the physical presence test, and the legal landscape that set the stage for the Wayfair decision in 2018. Amy and Bernie also discussed key takeaways from the Wayfair ruling, what laws have been adopted state to state and the expected business impact.
If you were unable to attend our live webinar and would like to access the recording, please click here and submit a short form. If you would like to discuss any of the topics covered during this presentation or have other tax planning questions for yourself or your business, please contact us.
To request a copy of our state-by-state economic nexus diagram, please fill out the adjacent form.