Wayfair Legislation | TaxConnections

07 Oct 2021

Why Wayfair Legislation Is Helping States Survive The Pandemic

Last year was not an easy one for a variety of reasons, the ongoing pandemic chief among them. 2021 has provided some relief, but COVID’s economic impacts are still being felt by individuals, businesses and governmental organizations across the country.

According to a pair of Harvard economists, the pandemic would have cost the U.S. “at least 16 trillion” if it ended this fall. Given COVID numbers are still high in many areas, it’s safe to say the pandemic is not over and its true cost will exceed their estimate. By how much is yet to be seen.

That said, some states have weathered the pandemic better than initially feared. This is largely thanks to legislation adopted following the 2018 Wayfair decision which allowed states to collect additional tax from online purchases.

Written by Monika Miles | Posted in Wayfair Legislation

21 Apr 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.

Written by Monika Miles | Posted in Economic Nexus • Wayfair Legislation

19 Aug 2020

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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Written by Monika Miles | Posted in Covid-19 • Wayfair Legislation