Supreme Court May Change the Nation Sales and Use Tax Landscape in the Wayfair Case!

If you’re doing business in more than one state, you’d best pay attention to a pending U.S. Supreme Court case entitled South Dakota v. Wayfair (2017 S.D. 56, 901 N.W.2d 754, cert. granted, U.S. S. Ct., Dkt. No. 17-494, 01/12/2018).  The outcome will either clarify or expand states’ rights to impose their sales or use taxes on out-of-state sellers.


Every state with a sales tax also has a complementary use tax.  The purpose of the use tax is to capture any transaction that normally would have been subject to sales tax but somehow escaped the tax, generally because the purchase was […]

State-by-State Physical Nexus Criteria

SalesMap of USA with flight paths. Image with clipping path. and use tax nexus is a very fluid and evolving area of tax law, and although Congress has historically been considered to be the sole gatekeeper to change, states have recently become emboldened in their efforts to unilaterally lower nexus barriers.  For example, on March 22, 2016, South Dakota passed S.B. 106 which effectively establishes an economic nexus standard.  The law requires remote sellers to register and collect use tax on its sales into South Dakota if its sales into the state exceed $100,000 […]

Fundamentals of Nexus

Fotolia_99128693_S_nexusI commonly work with clients that have nexus questions.  These days those questions often involve some of the more technical aspects of nexus, such as affiliate or click-through nexus.  But, even where I’m addressing some of the more technical aspects of sales and use tax nexus, I always try to make sure our clients understand where it all started, which is the subject of this article.  Having a clear understanding of the genesis of sales and use tax nexus, will better enable you to address fact-specific nexus questions that relate to your […]