Sellers who didn’t have the means or the will to resist in courtroom have capitulated and started collecting sales tax from buyers in most states with sales tax nexus laws.
Other online vendors, banking that these laws would not stand up in court against the Quill precedent, required a wait-and-see approach and will make a decision regarding sales tax group after South Dakota v. Wayfair. Now that choice has been made.
Considering that Quill is overturned, states are free to pursue sales tax from internet retailers that exceed the thresholds as stated within their economic nexus laws.
There’s also a chance that Congress can intervene and pass a law regulating sales tax. We dwell in a sales tax Wild West, and we’re going to be after all these choices as they unfold.
Should you fulfill economic nexus thresholds in certain states, we recommend speaking with a pre-determined sales tax pro to ascertain your very best plan of action.
How are economical nexus laws distinct from detect and document laws?
“Notice and report” laws are state laws that need online vendors without a physical existence at a state to collect sales tax or supply a significant amount of coverage states and their clients should they fulfill a certain earnings or transaction brink.
Though these seem similar to nexus laws, they are somewhat different.
The gap between nexus laws and note and document laws are that note and document laws have been legally effect starting July 1, 2017, starting with the state of Colorado’s note and law.
Economic nexus laws weren’t declared Constitutional before June 21, 2018 if SCOTUS handed down their decision at South Dakota v. Wayfair.
As a vendor, this may make a large difference if have been sales tax compliant. By way of example, as of now, no states have attempted to apply economic nexus sales tax laws to sellers retroactively.
Therefore, if you are only learning about economic nexus, then you really do have enough the time to become compliant.
But in case you have never been compliant in states using note and document laws, you may want to seek advice from a sales tax pro about the best way best to mitigate any damage because these laws have been in effect for several weeks at this time.