On June 21, 2018, the U.S. Supreme Court ruled in favor of South Dakota in South Dakota vs. Wayfair, Inc., granting the state authority to impose sales tax obligations on out-of-state transactions.

Wayfair changed that long-standing rule. The court found the respondents’ “economic and virtual contacts” with South Dakota to be a sufficient basis for a tax collection obligation (nexus). For economic nexus, a business establishes an obligation to collect and remit sales and use tax by its economic activity in a state. Generally, states look at the volume of sales or the number of transactions during a particular time frame, usually (but not always) the current or preceding calendar year. In South Dakota, the threshold is gross sales of $100,000, or 200 or more transactions in the state.

Since the ruling, economic nexus laws have been adopted by several states which could create more challenges for remote sellers. We brought in our partners at Avalara to share:

  • What the ruling is and how it has affected future laws across other states
  • What you can do now to understand the impact on your business
  • How to automate the sales tax compliance process to help save you time and confusion

Date: January 31, 2019 at 2:00 PM EST

Duration: 45 minutes