Let Barnwell Consulting assist you in finding answers to these questions – and provide you with practical solutions.
In the wake of the Supreme Court’s decision in South Dakota v. Wayfair, states’ power to tax remote sellers has greatly expanded. The Wayfair decision overturned the long-standing precedent in Quill v. North Dakota that retailers must have a physical presence in order for a state to require a retailer to collect sales tax from its customers in that state. Under Wayfair a retailer may have “economic presence” in a state and may be required to collect sales tax from customers without having any physical presence in the state.
States have responded to the Wayfair decision by enacting their own economic nexus statutes, each with similar but ultimately differing requirements for what constitutes economic presence. The ramifications of Wayfair affect not only online retailers but retailers of all types. Barnwell has helped a number of clients navigate these requirements and determine whether it is necessary for them to register and collect sales tax in states where they have customers but no physical presence.
In addition, Wayfair may have implications for an organization’s income tax position. Care should be taken when registering with jurisdictions for various types of taxes (income, sales & use, etc.). There are also other protections that organizations may need to consider (relevant case law in each jurisdiction, Public Law 86-272) when reevaluating the income tax implications. Juggling various types of taxes in multiple jurisdictions requires knowledge and experience across many areas of SALT. We stand by ready to assist you in this evaluation.