Wayfair Ruling’s Impact: Evolving Sales Tax Challenges in eCommerce and State Revenue Strategies

• The Supreme Court’s Wayfair decision allowed states to require remote sellers to collect sales tax, impacting eCommerce significantly.
• States have varied economic nexus thresholds for sales tax, complicating compliance for sellers.
• Marketplace facilitators and payment platforms are helping with sales tax, but challenges remain.
• Many finance executives are dissatisfied with their company’s sales tax compliance processes.
• Sales tax issues are increasingly affecting mergers and acquisitions.
• States are adjusting sales tax exemptions and holidays, with some cutting back on these incentives.
• Missouri has new exemptions for streaming and satellite TV companies; Nevada has new exemptions for groceries and baby supplies.
• States are expanding taxes on digital goods and services.
• Illinois and Tennessee have changed their sales tax sourcing rules.
• New Jersey repealed its sales tax holiday for school supplies; Nebraska is considering ending some sales tax exemptions.
• The rise of eCommerce has complicated drop shipment transactions and their sales tax rules.

Source: taxconnex.com

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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