How Many States Does Wayfair Apply To? When Does it Kick In?

October 02, 2018

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Currently approximately 30 states will adhere to Wayfair in some way.  While some states enacted specific nexus statutes, others felt their current provisions were broad enough to include wayfair’s economic nexus thresholds, and thus merely issued administrative guidance.  We believe all states will adhere to wayfair in some way within the next 6-12 months.  Most states are enforcing economic nexus for sales taxes starting in late 2018 or early 2019.

Transcript

Tim Schuster:How many states does this apply to and when, approximately, is this going to kick in?

 

Gary Bingel: Well, currently there's, about thirty states that have said they're going to be following Wayfair in one form or another. Some through legislation, other through just administrative pronouncement. And we do expect all of the states that have some type of sales tax to actually be following it within the next six to twelve months. States generally have picked one of two starting periods. Some have picked October 1st of 2018. Others have picked January 1, 2019 as their go live date. There's a couple states sort of looking to implement it retroactively, with which there may be some constitutional issues, so we'll have to wait and see how those play out. Really, the main question is not when does it kick in, but when can you start to comply? Given that there's going to be increased information system requirements as well as registrations and such. So the real question is how quickly can you get that information out, get registered and get up and running?

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