SCOTUS Wayfair Decision: What You Don't Know Can Hurt You |
What You Don't Know about the Supreme Court's Decision in the South Dakota v. Wayfair Case Can Significantly Damage Your Business Taxes Can Be Imposed No Matter How a Sale Was Made or How a Service Was Provided The Court’s decision is not limited to internet sales. It includes telephone solicitation sales, newspaper and radio ad responses, flyers mailed by you or your business, telecommunications of any kind, and any other means leading to a sale across state lines. There are no exceptions. Numismatic and Bullion Exemptions Must Be Maintained and Expanded Unless a state has (and maintains) an exemption, consumers who currently buy across state lines will now have to pay sales-taxes on purchases from out-of-state dealers, even if the dealer is located in a state with an exemption. ICTA has successfully grown the number of states with full or partial exemptions to 37 states in five years, including Alaska, Delaware, Montana, New Hampshire, and Oregon, which do not have sales or use taxes. Maintaining and expanding that work is now even more important than ever to reduce the risk the burdens of new or amended state tax laws. Out-of-State Dealer Registration States will require out-of-state dealers (meeting thresholds) to register with the state where delivery occurs. Some states may have very low thresholds. Exempted sales will count toward the threshold and registration will be required. Proof of Resale Business to business transactions will become much more complicated. Ten states presently do not accept out-of-state resale certificates. Costs of Collection of Taxes and Audits from the Buyers' States States can enforce sellers to bear the entire cost of tax collection and require audits to be held in the buyer’s state. ICTA's Fight to Maintain and Expand State Tax Exemptions What was very important is now crucial. Dealers need to recognize that every single one of their customers could be targeted by new tax laws and/or losses of exemptions. Dealers are now affected by what happens in every state, not just their own state. Help Us Help You ICTA is a 501(c)(6) tax-exempt association and is supported solely by dues and contributions. CLICK HERE for more information about joining. To contribute, donate online or make your check payable to ICTA, P.O. Box 237, Dacula, GA 30019. Valuable Resources for Dealer-Members “The Impact of the Supreme Court Decision in South Dakota v. Wayfair on the Numismatic Community”: A white paper that dives into the totality and complexity of the interstate-taxation issue that our community and others now face. To download a copy of the white paper, dealer-members can login, then, from the main menu bar, select Resources > White Papers > Sales Tax Exemption. “Sales-Tax Status & Economic Nexus Requirements by State”: With the states now swiftly acting to collect sales-tax revenue beyond their borders, we will keep this guide updated as changes occur. To access the latest guide 24/7, members can login, then, from the main menu bar, select Resources > White Papers > Sales Tax Exemption. |