Waypoints: Ideas and Insights to Navigate Enterprise Complexity

On June 21, 2018, the Supreme Court of the United States (SCOTUS) issued a landmark ruling in South Dakota v. Wayfair. The case involved whether or not it was constitutional for a state to require an online retailer to collect sales tax on internet sales when there was no physical presence. The Wayfair decision overturned previous rulings by SCOTUS in National Bellas Hess v. Department of Revenue of Illinois (1967) and Quill Corp v. North Dakota (1992), where it was determined that a company must have a physical presence in a state in order for that state to lawfully require the collection and payment of sales tax.

On December 22, 2017, President Trump signed sweeping tax reforms into law. As a result of the new and modified federal provisions, state conformity has become a popular topic of conversation among tax practitioners. Many states will have to make difficult decisions, and several have already started the process.