PART 1: HOW DOES WAYFAIR IMPACT MY BUSINESS AS A REMOTE SELLER
Q: How many states have passed economic nexus sales and use tax law?
A: All states that impose sales and use taxes except for Florida and Missouri have passed economic nexus laws for sales and use tax purposes. Please note that Alaska, Delaware, Montana, New Hampshire and Oregon do not impose a state sales and use tax.
Q: Which sales are used to determine economic nexus threshold?
A: It will depend on the state. Some states use gross sales, other use retail sales (sale for resale sales are not included) and others use taxable sales (exempt sales are not included).
Q: When determining nexus threshold, do I review Customer Bill to Location or Customer Ship to Location?
A: Ship to location for tangible personal property or where the services are being used for services.
Q: Does Wayfair affect traditional physical presence nexus?
A: Nexus can still be established through a physical presence in a jurisdiction, such as a warehouse, employee, or office in the state.
Freeman Law works with tax clients across all industries, including manufacturing, services, technology, oil and gas, financial services, and real estate. State and local tax laws and rules are complex and vary from state to state. As states confront budgetary deficits due to declining tax revenues and increased government spending, tax authorities aggressively enforce state tax laws to recapture lost revenues.
At Freeman Law, our experienced attorneys regularly guide our clients through complex state and local tax issues—issues that are frequently changing as states seek to keep pace with technology and the evolution of business. Staying ahead requires sophisticated legal counsel dedicated to understanding the complex state tax issues that confront businesses and individuals. Schedule a consultation or call (214) 984-3000 to discuss your local & state tax concerns and questions.