On January 12, the United States Supreme Court agreed to hear a case through which they will re-consider the primacy of “physical presence” in determining a sellers’ obligation to collect and remit sales tax across the country. The case (South Dakota v. Wayfair, Inc. Et al.) comes to the Court based on a South Dakota statute enacted in 2016 which required remote sellers to collect tax on sales to South Dakota customers if they had more than $100,000 in annual sales into South Dakota or engaged in 200 or more separate transactions.
With oral arguments potentially happening in April and a final decision in June, businesses need to immediately begin considering the steps they need to take to support what could be a greatly expanded sales tax compliance obligation in the very near future.
About the Author
Charles has been involved in monitoring the progress of the Streamlined Sales Tax Initiative and has given talks and presentations on a variety of tax topics including Sarbanes-Oxley, drop shipments, the taxation of high technology transactions, and the growth of sales tax holidays. He is a lawyer and a member of the Massachusetts Bar, and holds a BS in Business Economics from Bentley College, a JD from Boston University School of Law, and an LL.M in Taxation from Boston University School of Law. Prior to joining Sovos Compliance, he worked as an arbitration attorney for John Hancock.More Content by Charles Maniace