- The 2018 Supreme Court decision in South Dakota v. Wayfair allowed states to require remote sellers to collect sales tax based on economic activity, not just physical presence.
- States created their own economic nexus rules and thresholds, resulting in a complex, inconsistent system.
- Initially, most states used both revenue and transaction thresholds to determine nexus, but transaction thresholds proved problematic.
- As of 2026, most states have shifted to revenue-only thresholds, with only 18 states still using transaction thresholds.
- The trend is moving toward simplification: if a business’s revenue in a state is significant, it must collect sales tax; if not, it doesn’t.
Source: salestaxsolutions.us
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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