Supreme Court Rules Against Wayfair – For Sales Tax on Internet Sales
Jul 13,2018
In a landmark decision by the U.S. Supreme Court on June 21, 2018, the gates to the collection of sales tax on internet sales were flung wide open, revealing the promise of significant new revenue for 45 states. Background In brief, the overall issue at the court’s feet in South Dakota vs. Wayfair was whether states have a right to collect tax on sales made in their state by remote sellers, regardless of whether the seller has a physical presence in the taxing State. According to the Court’s opinion, the estimated sales tax revenues being lost each year because of the nexus rule range from $8 to $33 billion. In previous cases of Quill and Bella Hess (links below), the Court had ruled against states’ authority to collect sales tax without substantial nexus under multiple facets, the most significant being the physical presence test levied under the Quill decision. Ultimately...
Accounting and Advisory Partner, Tim Howe featured in Accounting Today
Jul 11,2018
Tim Howe, Smith & Howard’s State and Local Tax Practice Leader, was recently featured in Accounting Today. Howe provided insights on the Supreme Court hearing in Wayfair v. South Dakota and how states are planning for a “post-Wayfair” world. “Georgia is getting in line with everyone else,” said Howe. “If the Supreme Court decides for South Dakota, Georgia wants to have its legislation in place so it’s ready to rock. They don’t want to wait until the next legislative session next spring to go through the process.” To read the full article, click here.
The End of the Internet Tax-Free Zone?
Apr 09,2018
With South Dakota vs. Wayfair on the docket for the Supreme Court this month, the Court is expected to agree with South Dakota that it is time for the internet sellers to operate like brick & mortar stores and collect sales tax on all sales. However, there has been growing noise from some politicians and retailers opposing the possible decision. Click here to read a brief overview on the South Dakota vs. Wayfair case. For some politicians, they believe the determination of sales tax collection is a legislative matter. The Washington DC publication, The Hill, wrote on April 4: “A group of lawmakers that includes House Judiciary Committee Chairman Bob Goodlatte (R-Va.) and Senate Finance Committee ranking member Ron Wyden (D-Ore.) said in their brief that ‘it is for Congress — not the Solicitor General, this Court, or the States — to decide the best interstate taxation scheme for Internet sales’.” If the Supremes rule...

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