Following the US Supreme Court’s decision in South Dakota vs. Wayfair on June 21, 2018, many states have enacted economic nexus laws. These laws require remote sellers to collect sales tax into their respective states, similar to laws enacted in South Dakota.
Over 25 states have enacted new laws effective on or before January 1, 2019, and nearly every state imposing a sales tax will most likely have a similar law on the books within the next nine months.
Additionally, states are changing their laws to assert income tax nexus.
Companies that sell products or technology services to out-of-state customers will need to analyze their existing filing and compliance systems and make sure they’re adequate to collect and remit sales and use taxes across the country.