Sales Tax Implications of Wayfair Decision

On June 21, 2018, the U.S. Supreme Court struck down the “physical presence” standard for sales tax nexus, adopted 26 years ago in Quill v. North Dakota. In the 5-4 decision authored by Justice Anthony Kennedy, the court called the Quill physical presence requirement an “unsound and incorrect” standard that creates market distortions and judicially created tax shelters for out-of-state companies. States can now enact legislation imposing sales and use tax collection requirements on out-of-state retailers who do not have a physical presence in the taxing state.

We have prepared a document detailing the sales tax implications of the Wayfair, what businesses should know and whom to contact at Elliott Davis should you any further questions.