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The Wayfair Decision: What Manufacturers Need to Know about the New Tax Rules

Posted by Concannon Miller on Thu, Jan 31, 2019

Last year’s Wayfair decision is a momentous development in the debate over the digital economy’s responsibility for the collection of sales tax. As companies increasingly conduct business across state lines, how states and the federal government craft tax legislation that addresses the evolving definition of “nexus” significantly impacts all taxpayers—including manufacturers.

(Background: In June 2018, the U.S. Supreme Court ruled in the landmark case South Dakota vs. Wayfair that the “physical presence test” for determining if a seller is required to administer sales taxes is “incorrect.” States may now legally require sellers to administer sales taxes, even if the seller has no in-state physical presence.)

While many states offer manufacturers generous sales tax exemptions on certain equipment and machinery purchases, the industry is now faced with new sales/use tax rules that impact both purchase and sale transactions. The Wayfair decision has important business implications manufacturers can’t afford to ignore—lest they wind up with a hefty tax bill they didn’t plan for.

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Topics: Manufacturing, Multi-state taxation

Multi-State Businesses: How to Know if You Owe Taxes (Video)

Posted by Jane Spradlin on Tue, Jan 15, 2019

If you do business in more than one state, there’s a good chance you may owe taxes in another state. Instead of being issued a jeopardy assessment, it’s best to work with an experienced CPA and be proactive.

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Topics: Business tax planning, Multi-state taxation

Multi-State Tax & The Wayfair Fallout: What’s Next for Online Sellers

Posted by Concannon Miller on Thu, Oct 4, 2018

The recent Wayfair decision has drastically altered the landscape for states that want to collect sales and use taxes.

Prior to this landmark U.S. Supreme Court case, economic "nexus" for tax purposes was established only if the seller of goods or services exhibited a "physical presence" in the state. Under Wayfair, sales and use tax obligations may be imposed on remote sellers — even those operating solely online. 

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Topics: Multi-state taxation

Does Your Company Do Business Online? Be Aware of New Sales Tax Rules

Posted by Concannon Miller on Thu, Jun 28, 2018

A new U.S. Supreme Court ruling paves the way for states to require Internet sellers to collect sales tax from consumers — even if they don't have a physical presence in the state. In doing so, the Court has reversed the long-standing, but controversial, precedent in Quill v. North Dakota.

This new landmark decision – South Dakota v. Wayfair – reached by a narrow 5-4 vote, puts online retailers on the same virtual sales tax footing as brick-and-mortar stores.

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Topics: Business tax planning, Multi-state taxation

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