State & Local Government Policy, Business and Technology

Two Years After the Wayfair Decision, State Governments Still Lag on Modernizing Technology Infrastructure to Collect Online Sales Tax Revenue

Route Fifty: This month marks the two-year anniversary of the landmark U.S. Supreme Court decision in South Dakota v. Wayfair, Inc., which granted state governments the ability to compel online businesses to collect sales tax for internet-based transactions. In the tax world, this is known as “economic nexus” which means that states have the right to collect taxes on online businesses that aren’t physically present but generate economic activity within the state. Over the past two years, more than 40 states and the District of Columbia have implemented economic nexus laws and started imposing sales tax on remote sellers.

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