Can I, or My Company, be Penalized for not Paying Sales Tax in Another State?

Upon the passage of the U.S. Supreme Court case of South Dakota versus Wayfair, Inc. in 2018, the sales tax rules have become much more broad and complex. Prior to the ruling in this case, you typically had to have some form of physical presence in other states to be held liable for sales tax in that state. In light of all the new online shopping and direct shipment to customers, states have increasingly been in search of ways to tap into more revenue dollars. After the Wayfair case, you may now have a sales tax liability in another state simply due to the dollar threshold or product quantity threshold of sales you ship into any one state. No longer is physical presence a requirement to constitute a sales tax liability, also known as sales tax nexus, in another state.  

Please click here to read more about this economic nexus.

Submitted by: Jeremy Fortner