What Does the Wayfair Decision Really Mean for States, Businesses, and Consumers?

Nov 29, 20221 min read

Updated: Jan 16

These highlights capture the essence of the Wayfair Decision and its impact on sales tax collection and compliance.

Overturned Previous Precedents: The decision overturned the 1992 Quill Corp. v. North Dakota ruling, which required a physical presence for states to collect sales tax from out-of-state sellers.
Economic Nexus Standard: States can now require out-of-state sellers to collect sales tax if they meet certain economic thresholds, such as a specific amount of sales or number of transactions.
Impact on Remote Sellers: Remote sellers must now evaluate their sales activities in each state to comply with new sales tax laws.
Widespread Adoption: Most states quickly adopted economic nexus laws following the Wayfair decision, leading to a more complex sales tax compliance environment.
Legal and Compliance Challenges: Businesses face increased challenges in monitoring and complying with varying state tax laws and regulations.