Five Years of South Dakota v. Wayfair: What’s Next for Nexus?

The U.S. Supreme Court decision in South Dakota v. Wayfair and its lasting impacts are a game changer for essentially any business making sales.  Will the Federal Congress get involved in the economic nexus “game”?  The Senate Finance Committee held a hearing discussing the burden the Wayfair decision through state legislation places on small sellers. Our own Diane Yetter was on the panel and provided testimony about the challenges businesses face in determining what the specific rule is that applies in each state.  The Government Accounting Office (GAO) in their report published late 2022 reinforced the complexity and resulting burdens.

States continue to fine tune previously passed nexus legislation and rules, especially in light of the interplay between economic nexus, marketplace nexus (or marketplace facilitator rules), and physical nexus. Modifications to economic nexus thresholds, rules about including/excluding marketplace sales, and new implications for where you have inventory are just a few of the changes that have popped up post-Wayfair for multistate sellers to deal with.  South Dakota is the lastest state that has recognized the burden that the 200 transaction count threshold places on the smallest of sellers.  Effective July 1, 2023, this part of the South Dakota economic nexus threshold will be dropped.  The state hopes other states will follow their lead.

The strategies and systems you have in place to manage sales tax must be able to handle continual change in the sales tax landscape and changes in your business. This is especially important as states are getting more aggressive in their enforcement of nexus laws through audits. You cannot assume that you can fly under the radar any longer.

This webinar will provide a full rundown of the future of sales tax five years after Wayfair decision so that your business can stay compliant.

Your Teaching Staff

This 90-minute live webinar is taught by a strategically coordinated group of sales tax experts, Craig Johnson of Streamlined Sales Tax Governing Board, Inc, Jamie Szal of Brann & Isaacson, Fred Nicely of the Council on State Taxation, and Diane Yetter of the Sales Tax Institute. They will share a look into the future of sales tax five years after Wayfair to help you understand what to expect as well as dig into the practical issues and questions businesses run into with economic nexus. They will explain nexus trends across the states and how to develop an ongoing maintenance strategy to keep your company current and compliant.

During the live Q&A portion of the webinar, you can get answers to your specific sales tax questions directly from the experts.

Learning Objectives for this webinar include:

• Breakdown of the current impacts of U.S. Supreme Court’s historic decision in South Dakota v. Wayfair and what it means for your business today including the perspective of an insider.
• Learn key aspects of your business you need to monitor so you can quickly account for changes in your business and stay compliant in an ever-changing landscape.
• Understand how changes in economic (and physical) nexus rules like modifications to economic nexus thresholds and whether employees in the state may impact your business and your company’s requirement to register with different states.
• Find out how state interpretations of inventory constituting physical nexus (or not!) can impact your status as a remote seller and the type of registration you have with a state.
• Learn about why and how states are moving away from gross sales to retail sales, eliminating wholesalers and manufacturers from having to register.
• Identify the corrective actions you can take if you haven’t been registered, five years after the fact.
• Learn what impact sales tax nexus activities can have on other taxes such as income tax and business licenses.
• Hear about challenges being raised in the courts regarding economic nexus to help you evaluate the impact on your business.