State and Local Tax | Wayfair | Podcast | Rea CPA

episode 137 – what the wayfair?! how wayfair v. south dakota will influence the way businesses approach sales tax

Joe Popp and Scott Zielaskiewicz state and local tax experts, join unsuitable to talk about the Wayfair case and how state and local taxes will affect all businesses in the United States.

Remember when Schoolhouse Rock! taught us how a bill becomes law? They did it in such a fun and whimsical way, but – let’s face it – there’s really nothing whimsical about some of the legislation being discussed on Capitol Hill these days. Take, for example, the Wayfair v. South Dakota case. It’s all about sales taxes and nexus and… well it seems a little boring in comparison. That is, until you really get into the details of the case and what the implications are for businesses nationwide.

To get more knowledge about this landmark case, Rea’s State and Local Tax services team visited Washington, D.C., in April to hear opening arguments on this particular case. On this episode of unsuitable, we’re glad to have Joe Popp and Scott Zielaskiewicz, state and local tax ninjas, back on to talk about their experience and to explain why this case matters to businesses everywhere.

The outcome of this case will determine how states treat out-of-state sellers that have no physical presence in that state, and it will likely affect every single one of Rea’s clients. If upheld, the U.S. Supreme Court will rule that a business must have a “physical presence” in the taxing state in order for that state to require the business to register for sales and use taxes. If overturned, the U.S. Supreme Court will rule that “physical presence” is not necessary for a state to require a business to register and file for sales and use taxes.

If your business operates in multiple states or you like to purchase things online, you will be interested in these other topics discussed in this episode:

  • What is actually likely to happen if South Dakota wins? Or if Wayfair Wins?
  • What do “cookies” have to do with all of this?
  • How will this case impact you, as a local business in Ohio, an online seller on Etsy, a manufacturer who sells big machines and parts, or an individual who purchase things online?

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articles & insight

What The State of South Dakota v. Wayfair, Inc. Means To Ohio-Based Businesses – The outcome of this case will determine how states treat out-of-state sellers that have no physical presence in that state, but do a certain amount of sales and/or transactions in that same state, from a tax perspective.

Online Sales Get Complicated – Each state in the U.S. has its own set of taxations rules and it can get tricky if you don’t know how to manage them.

Podcast | The State Tax Response To Federal Tax Reform – It’s important to understand the various considerations states are grappling with as a result of tax reform. And, throughout this episode, we will talk about nexus concerns business owners will be left to contend with as the year continues to unfold.

Possible State Tax Implications for your BusinessMake sure you pay attention for state guidance as the year goes on and be mindful as to when the changes go into effect.

Reading Between The Lines – Taxes are difficult to fully wrap your head around. But, you can look at the trends in the news to help you make assumptions as to what regulations will affect you or your business.

official transcript

Click here to read the official transcript for episode 137, “What the Wayfair?! How Wayfair v. South Dakota Will Influence Business”