Most Common FALSE Information Spread About
the Wayfair Supreme Court Decision
1. FALSE INFORMATION: Wayfair applies only to Internet sales.
The Wayfair decision applies to all sales across state lines, by any form of communication, including but not limited to telephone, newspaper, mail, or Internet.
2. FALSE INFORMATION: Wayfair applies only to sales of “tangible goods.”
The Wayfair decision specifically applies to both goods and services. “Services” in many states currently, and other states in the near future, includes legal opinions, accounting advice, tax advice, appraisals, etc.
3. FALSE INFORMATION: Wayfair applies only to sales above a minimum state set threshold.
The Wayfair decision does not require a threshold, and several states lack a minimum sales volume or minimum number of sales in order to require sales-tax collection and payment by the out-of-state seller. Justice Kennedy’s Supreme Court opinion referred to the South Dakota minimum of $100,000 in sales or 200 sales transactions, but did not establish any such requirement. Several states have incorporated the threshold, but other states have not.
4. FALSE INFORMATION: Wayfair does not require dealer registration.
The Wayfair decision makes no reference to dealer registration. Many states have indicated that they will require immediate registration for out-of-state sellers, whether or not their sales meet a state minimum taxation threshold. Each state will make its own determination.
5. FALSE INFORMATION: Wayfair limits collection to only one total state sales tax.
Wayfair makes no requirements regarding the state computation of sales taxes or on whether cities, counties, and other tax-collecting entities can require sales-tax collections from remote sellers. State laws vary on the subject, and state statutes yet to be written post-Wayfair will address the multiple layers of taxation as they see fit. Constitutional issues are clearly involved, but many state legislatures may nevertheless allow separate collections by governmental subdivisions authorized under their respective states’ laws.
