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Life After Wayfair: What Now?

North Carolina Association of CPAs

  • March 2019

Kay Hobart wrote an analysis in The Interim Report, the North Carolina Association of Certified Public Accountants' magazine, on where state tax policy is likely heading as a result of the U.S. Supreme Court's Wayfair ruling. 

"In South Dakota v. Wayfair, the United States Supreme Court fundamentally altered the rules governing when states may impose a sales tax," Kay wrote. "For more than 50 years, decisions from the Court protected retailers without a physical presence from collecting sales tax in that state. In Wayfair, the Court eliminated that protection. It held that 'physical presence is not necessary to create a substantial nexus' under the first prong of the Complete Auto test – the framework to evaluate whether a state tax runs afoul of the Commerce Clause of the United States Constitution."

"While many states, including North Carolina, have published guidance in light of Wayfair," Kay continued, "significant questions remain regarding the meaning of 'substantial nexus' and the authority of states to impose a tax on remote sellers and other types of businesses." 

You can read Kay's breakdown here. The Interim Report is the quarterly publication of the North Carolina Association of CPAs.