On June 21, 2018, the U.S. Supreme Court overturned, Wayfair Tax Case by a 5-4 majority, that states could charge tax for out-of-state purchases in the South Dakota v. Wayfair case. This overturned 51 years of authority that had restricted states from imposing their sales tax obligations on out-of-state retailers who did not have a physical address in their state. As of this date, 31 states already had internet tax laws in place. Although this ruling was not a blank check for them to do as they want, it does change the outlook on how each state will handle the new power to tax; and most importantly, one of the biggest concerns though will be for business that have downloads only since there is no products physically crossing the state line. For a full case overview, click here.
At ABS-Carolinas, it is our job to keep us with each new law as it comes into being. Any time you have a question on how this affects your business, we want to make sure that you have an answer. And this one is a big one! Contact us today to see if your business is affected by the South Dakota v. Wayfair case and how we can help you prepare for any tax implications it may have on your filing season.