James Ortiz | October 9, 2018
In its decision on South Dakota v. Wayfair on June 21, 2018, the U.S. Supreme Court overturned a 1992 precedent that excused out-of-state retailers from collecting and remitting state sales tax when selling products to residents of a state. The seller was only required to collect sales tax if they had a physical presence such as a brick-and-mortar store or an employee within the buyer’s state legal boundaries.
With the recent ruling, physical presence is no longer required for a state to impose a sales tax on sellers, and states stand to collect potentially billions of dollars in sales taxes from remote sellers. While states aim to maximize a potential windfall of new tax revenue, tribes should be exploring the impact on their sales tax collection. Read more. Read More