It’s hard to believe that it has been three years since the landmark decision in the Supreme Court Case of South Dakota v. Wayfair (2018) that changed the sales tax landscape. The high court’s decision was that South Dakota’s economic nexus law was constitutional and that the state could require companies who met certain sales thresholds to collect and remit sales tax on sales to South Dakota customers, even if the company had no physical presence in the state. The decision effectively added another means that states can create nexus in a state for sales tax purposes.
The Supreme Court’s ruling did not automatically make this the law of the land for all 50 states. It was a South Dakota case, so the ruling just applied to South Dakota. However, since then, states have been jumping on the economic nexus bandwagon and enacting laws similar to those of South Dakota. States have long been searching for new ways to bring revenue into their state and the Wayfair case gave them a long-awaited opportunity to do so.
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