New Jersey and Pennsylvania React to Wayfair Decision on Nexus Thresholds
NJ & PA React to U.S. Supreme Court Wayfair Decision
Our July 24, 2018 blog alerted our readers to the U.S. Supreme Court’s landmark decision that physical presence is no longer required for a state taxing authority to find that a company has sufficient contact with that state to make it subject to the state’s sales tax reporting requirements. Wayfair was an out-of-state retailer that South Dakota successfully prevailed at the U.S. Supreme Court in finding that it had sufficient nexus (contact with the state) to make it subject to South Dakota’s sales and use taxes.
South Dakota’s threshold for finding nexus was that the out-of-state retailer had at least $100,000 in sales delivered to the state or the retailer had at least 200 transactions in a year in the state. We noted in our blog that the Supreme Court did not rule whether these amounts were a required threshold or simply indicative of substantial nexus. We had forewarned our readers that states may push the envelope by implementing lower thresholds than S. Dakota did. Let’s look at how two states have reacted. [Read more…] about New Jersey and Pennsylvania Reaction to Wayfair Decision on Nexus Thresholds