WAYFAIR/NEXUS TAX

In an effort to keep our IEDA Dealer Members up to date and informed on industry focused topics that directly impact their business, the links below are intended to offer insight and guidance into the current tax situations arising from the South Dakota vs. Wayfair ruling.

In addition to keeping this page updated, the IEDA will offer a monthly webinar on this topic for its member dealers beginning on July 1st. Check back for further details regarding this webinar series for IEDA Member Dealers.

The Supreme Court’s decision in South Dakota v Wayfair no longer limits states to the “physical presence” standard previously required to impose tax collection and remittance responsibility on a business. The new state nexus standards now look to criteria other than physical presence in evaluating a seller’s connection to that state. For example, South Dakota’s standard looks at revenue earned by sales to in-state customers ($100,000) or the total number of in-state transactions (200).

Understanding which states have enacted (or are about to enact) economic nexus standards, how those standards are articulated in each state, and having the systems and processes in place to keep up with changes is the key to maintaining tax compliance.