US Corporate Law News: state sales tax development

1 July 2018 | Applicable law: US

On June 21, 2018, the Supreme Court of the United States held in South Dakota v. Wayfair, that sales by a seller of a certain number or value in a state are sufficient to establish a nexus between such state and seller for the imposition of state sales tax. 

For state sales tax to apply in this situation, the relevant state must have a law that provides a clear threshold on when sales tax applies to an out of state seller. This holding overturns the previous rule that a seller must be physically present in a state to be subject to its sales tax. One issue that remains open is whether a seller could be subject to retroactive liability.

For more information see here.

This article was written with contributions by Tim Moore.

This document (and any information accessed through links in this document) is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from any action as a result of the contents of this document.


Related experience

As a full-service law firm, we are able to provide advice and information about a wide range of other issues. Here are some related areas.

Join the club

We have lots more news and information that you'll find informative and useful. Let us know what you're interested in and we'll keep you up to date on the issues that matter to you.