South Dakota v. Wayfair

Companies and state tax authorities are embroiled in court cases that could have a major impact on how states handle taxes on digital advertising, online sales and transfer pricing.

The ramifications of the momentous Supreme Court ruling continue to unfold.

If states adopt the recommendation, businesses would not only need to limit themselves to sales solicitation, but also remain below the state economic nexus threshold to avoid state income tax.

Bloomberg Tax and Accounting’s annual state tax survey reveals nationwide trends in nexus policies and more.

The responsibility for collecting sales tax for businesses that sell remotely has become a ‘nightmare,’ according to a Finance Committee hearing.

An estimated 800 sales tax bills are under consideration by state legislators each month, according to a new report, as lawmakers grapple with the complexity of sales and use tax four years after the Supreme Court handed down the South Dakota v. Wayfair decision.

The only clear theme from a recent Senate hearing was the lack of certainty around when a retailer should start collecting tax.

The 2018 case prompted many states to begin requiring remote sellers to collect sales taxes, but with inflation at a 40-year high, some are offering sales tax holidays and other relief.

A small family business is fighting what it claims is an overly complex sales tax regime for remote sellers.

The biggest developments in state and local tax will look to a post-COVID-19 world.