DIAMOND BAR, CA (12.17.2019) – Many SEMA-member manufacturers, distributors and retailers have been impacted by the 2018 U.S. Supreme Court Wayfair decision that allows states to require sales tax collections based solely on the volume of sales into that state (economic nexus).
The Court overturned its 1992 Quill decision, which previously required a company to have a physical presence before it could be compelled to collect sales tax.
SEMA has compiled resources to help companies understand whether Wayfair impacts their business and provide additional information to help them respond if necessary.
Cash-strapped states have quickly implemented their new authority to require tax collection. Nearly all 45 states that collect sales tax have updated their regulations accordingly. There is no one national standard. Rather, each state is setting minimum dollar thresholds that trigger collection. In some states, that threshold may also be tied to the number of sales transactions—for example, $100,000 in sales or 200 transactions annually into that state.
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