Remember when Schoolhouse Rock! taught us how a bill becomes law? They did it in such a fun and whimsical way, but – let’s face it – there’s really nothing whimsical about some of the legislation being discussed on Capitol Hill these days. Take, for example, the Wayfair v. South Dakota case. It’s all about sales taxes and nexus and… well it seems a little boring in comparison. That is, until you really get into the details of the case and what the implications are for businesses nationwide.

Rea’s State and Local Tax services team visited Washington, D.C., in April to hear opening arguments on this particular case. On this episode of unsuitable, we’re glad to have Joe Popp and Scott Zielaskiewicz, state and local tax ninjas, back on to talk about their experience and to explain why this case matters to businesses everywhere.

What is Wayfair v. South Dakota all about?

The outcome of this case will determine how states treat out-of-state sellers that have no physical presence in that state, and it will likely affect every single one of Rea’s clients.

If upheld, the U.S. Supreme Court will rule that a business must have a “physical presence” in the taxing state in order for that state to require the business to register for sales and use taxes. If overturned, the U.S. Supreme Court will rule that “physical presence” is not necessary for a state to require a business to register and file for sales and use taxes.

If your business operates in multiple states or you like to purchase things online, you will be interested in these other topics discussed in this episode:

• What is actually likely to happen if South Dakota wins? Or if Wayfair Wins?
• What do “cookies” have to do with all of this?
• How will this case impact you, as a local business in Ohio, an online seller on Etsy, a manufacturer who sells big machines and parts, or an individual who purchase things online?

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