It has been a big day in the world of sales tax! The U.S. Supreme Court issued a ruling in the case South Dakota v. Wayfair that changes the standard for when a state can require sales tax to be collected. It is certain that there will be changes to who needs to collect, however, there are still some details to be worked out. For example, it is still possible that Congress will weigh in and limit the reach of the states in an effort to regulate interstate commerce, as some of the justices encouraged them to do. Also, protections for small business were encouraged by the court.
What states does this impact?
The ruling is seen as a big win for South Dakota and potentially for other states that have enacted, or are working on enacting, similar statutes—Alabama, Connecticut, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Massachusetts, Mississippi, Ohio, Oklahoma, Pennsylvania, Tennessee, Wyoming and soon to be others.
What does it all mean to you?
For now, gather your documentation and watch for our updates. We will keep you posted on the options available to your business. If you have specific questions, feel free to reach out to me or your VonLehman advisor.