What Has Changed About Nexus and Wayfair?
February 21, 2020
Selling over the internet means you need to know the concept of nexus.
Specifically in that case, just having $100,000 of sales in a state or 200 separate transactions were sufficient contacts with the state to allow the state to force you to collect sales tax on your sales into the state. Currently, of the 46 states and the District of Columbia that actually impose a sales tax, over 40 of these jurisdictions now have some sort of interpretation or some sort of provision related to Wayfair and establishing economic Nexus for sales taxes.
It took about a year and most states have now jumped on that bandwagon as a means of collecting sales tax from out-of-state remote sellers. One thing to keep in mind, that these Wayfair and economic Nexus provisions relate not just to remote sellers but to all types of companies that may have sales across state lines, so they are much broader than many people initially believe them to be.