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Archive for Wayfair Legislation

Important Updates About Wayfair Legislation In 2021

Important Updates About Wayfair Legislation In 2021

After the landmark decision in South Dakota v. Wayfair (2018), states across the nation rushed to implement Wayfair-related legislation. For most states, this meant implementing economic nexus and/or marketplace facilitation laws to better capitalize on the sales tax opportunities presented by online retail.

While it’s taken some states longer than others, 2021 could be the year that every state with a general sales tax finally implements Wayfair-related legislation.

It’s also important to note that states that already have Wayfair-related legislation are still making tweaks and refining their laws to best suit their economic needs.

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What You Need To Know About Alcohol Taxes And Wayfair Legislation

What You Need To Know About Alcohol Taxes And Wayfair Legislation

There’s nothing quite like winding down after a long week with a glass of wine, but what you might not be aware of is the complex tax regulations that are impacting the sale of your alcoholic beverage of choice.

For most people, alcohol taxes aren’t particularly notable beyond how they impact the final sales price. For businesses involved in the sale of alcohol (especially online retailers) however, recent changes due to the pandemic and the 2018 Wayfair decision are creating a bit of a mess.

Why Are Alcohol Taxes So Complex?

The first factor in this mess are the taxes placed on alcohol sales. Alcohol taxes are particularly complicated for a number of reasons. Some of this is due to its nature as a legal but still heavily regulated drug. Some of it may also trace back to the historic importance of alcohol taxes as a source of revenue for the U.S. government.

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How Covid-19 Is Impacting Wayfair Legislation

How Covid-19 Is Impacting Wayfair Legislation

In a number of ways, 2020 has been a year of unprecedented change. In the world of online sales and use tax, which has already seen significant change over the last two years, legislation is quickly being adapted to fit the ‘new normal’ that has resulted from the COVID-19 pandemic. More specifically, the fallout of the pandemic has significantly affected Wayfair-related legislation and how it is being applied.

These laws, which came about after the 2018 Wayfair ruling, have allowed over 40 states across the country to implement economic nexus and marketplace facilitation guidance. In a time when states are looking for ways to make up for lost revenue and to fill budget deficits caused by the pandemic, these laws are prime targets.

Economic Nexus During the Pandemic

As mentioned above, the last two years have seen dramatic change for online sales tax due to the Wayfair ruling. Only two states with a general sales tax have yet to implement some sort of Wayfair-related legislation. However, the pandemic may finally push lawmakers to pull the trigger.

As shared in this article from Avalara, Florida lawmakers introduced an economic nexus bill in August 2019, which progressed through the rest of the year and beginning of 2020, but died in appropriations in March 2020. However, the economic fallout of COVID-19 in Florida, which relies heavily on sales tax collected by in-state businesses, may yet cause lawmakers to change their tune.
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