Tax experts explain significance of South Dakota v. Wayfair, Inc.

While the Supreme Court of the United States deliberates South Dakota v. Wayfair, Inc., retailers from Seattle to Key West are holding their breath. The case could have long-reaching implications. Will the court side with South Dakota, perhaps making it easier for states to impose a sales tax collection obligation on out-of-state sellers? Or will it side with Wayfair and leave status quo alone?

To help you better understand South Dakota v. Wayfair and its possible impact on your business, Avalara has created a series of short videos featuring SALT expert Rachel A. Le Mieux — CPA, CMI, and partner at Peterson Sullivan LLP — and Scott Peterson, Vice President of U.S. Tax Policy and Government Relations at Avalara.

The first three videos can be found at Avalara Sales Tax 360.

What is the South Dakota v. Wayfair, Inc. case all about?

Scott Peterson provides context for the Supreme Court case:

• Quill Corp. v. North Dakota, the 1992 Supreme Court case that upheld the physical presence rule
• South Dakota wants the court to repeal Quill
• Wayfair wants to the court to uphold Quill

Will the Supreme Court’s decision impact companies of all sizes?

Rachel A. Le Mieux explains how the case will impact companies of all sizes, no matter what the court decides.

• Many states now base tax obligations on economic activity
• Many states impose use tax notice and reporting requirements on non-collecting sellers

Why should companies automate sales tax compliance?

Rachel A. Le Mieux urges businesses to automate sales tax compliance now because:

• You could already have collection responsibilities in multiple states
• The more states expand nexus, the more time you’ll have to spend on compliance
• Waiting could increase your exposure to retroactive sales tax liability

Want to know more about South Dakota v. Wayfair?

If the content of those videos whets your appetite and leaves you craving a deeper understanding of South Dakota v. Wayfair and its possible effect on your business, check out the infographic and whitepaper at Avalara Sales Tax 360.

To watch more short videos about South Dakota v. Wayfair, go to Avalara videos and use the South Dakota v. Wayfair filter. There you’ll find:

• How would states benefit if the Supreme Court sides with South Dakota? – with Scott Peterson
• Will states without economic nexus laws adopt South Dakota’s model? – with Scott Peterson
• Is tax-free shopping soon to be a thing of the past? – with Scott Peterson
• If Wayfair, Inc. is successful, are remote sellers off the hook for sales tax? – with Scott Peterson
• If South Dakota is successful, what do you tell controllers and CFOs? – with Rachel A. Le Mieux

No one can know the actual impact of the South Dakota v. Wayfair decision until the court releases its opinion, expected in June. In the meantime, learn more.