Counsel Derek Rose and Partner John Barrie authored an article Oct. 23 for Bloomberg concerning the U.S. Supreme Court decision in South Dakota v. Wayfair, and the post-Wayfair tax implications for both out-of-state sellers and market place facilitators. The decision clearly broadened the ability of states to demand tax revenue on interstate sales by out-of-state venders with only “substantial virtual connections” to the state, they wrote. Since then, nearly every state imposing a sales tax has now enacted Wayfair legislation. States also are beginning to look at Wayfair in the context of income tax nexus. Nevertheless, many unanswered questions remain as to the extent and limits of the decision.

This document provides a general summary and is for information/educational purposes only. It is not intended to be comprehensive, nor does it constitute legal advice. Specific legal advice should always be sought before taking or refraining from taking any action.