What Wayfair’s Lawyer Says About The Wayfair v. South Dakota Decision

PYMNTS

The 2018 South Dakota v. Wayfair ruling allowed counties, states and municipalities to pass laws to tax out-of-state sellers and the eCommerce marketplaces that serve them, but the ruling did not disclose specifications on what such laws must look like.

Deep Dive: The Unfolding Legacy Of South Dakota v. Wayfair

PYMNTS

Governments rely on tax revenues to fuel the vital services they provide to residents and businesses – from firefighting and public education to water system repair and road maintenance. Retail sales taxes have long been key sources of state governments’ budgets and have been their greatest single stream of revenue since the mid-1900s. . This tax base has shrunk by about 20 percent since 1970, however. Such a levy was not legal until last year’s South Dakota v.

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South Dakota Sues Wayfair, NewEgg, Overstock And Systemax Over Lost eCommerce Revenue

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It’s a big litigious party out in South Dakota these days, as the state is suing four eCommerce merchants for their lost sales tax – and different merchants (in a separate suit) are suing right back. The four firms named in the suit are Newegg, Overstock.com, Systemax Inc and Wayfair, all of which are now being compelled by the state in court to hand over sales tax. North Dakota. North Dakota.”. Regulation Retail sales tax South Dakota

Can South Dakota Move The Needle On A Federal Online Sales Tax?

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This is proving particularly true for more and more cash-strapped states that have spent years staring at soaring traffic for online retailers but little — if any — increases in the taxes reaped from this digital, transcontinental economy. And South Dakota, for one, has had enough. “Legal challenge” might actually be the best-phrased stone South Dakota has thrown at the beehive of transnational eCommerce. North Dakota.

Report: The Risky Business Of Navigating Online Sales Tax For Merchants

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Merchants working to expand and sell online in more markets must comply with each market’s local sales tax regulations, however, and that is an increasingly complicated task. Levy laws can vary widely between states, with one state taxing a product that another does not, for example. This creates an ever-shifting sales tax landscape in which merchants and their marketplaces must stay on their toes and be ready to adjust to each new compliance change.

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As Consumers Embrace eCommerce, Tax Complexity Grows

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South Dakota vs. Wayfair was only the beginning. The Supreme Court ruling has started the ball rolling for states and municipalities to tax eCommerce – specifically, out-of-state firms and online marketplaces. 12,000: Number of different sales and use taxes in the U.S.

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The Economic Case For Remote Sales Tax Uniformity

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George Isaacson has been watching the results of South Dakota v. The cost of the new taxes does not seem to be weighing businesses down, but the pain of compliance certainly is, he said. . “It’s is the only country that has such a complex consumption tax system.” .

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The (Un)Certainty Of eCommerce Sales Taxes

PYMNTS

The only certainties in life, the saying goes, are death and taxes. We’ll underscore the certainty of the latter — taxes — for eCommerce firms and sales taxes , especially. Although taxes may be certain — just how much tax is due, and where, and perhaps even when, are all variables that are far from certain. To summarize that decision, states can tax sales by companies that do not have a physical presence within the state. Taxes, Local And Complex.

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How Merchants Navigate Tax Collection Complexity With Technology  

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eCommerce firms are navigating a tax collection environment that increasingly requires technology and automation to ensure compliance. 2018: The year of the Supreme Court decision in the South Dakota vs. Wayfair case. Today In Data Commerce ecommerce News payments regulations taxes Technology Today in DataIn corporate payments news, Citi is tapping into application programming interface (API) calls to make treasury ops real-time.

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Remote Seller Taxation: A Job For Tax Automation

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Aftershocks from the South Dakota v. Wayfair Supreme Court decision continue to rattle online merchants, as three states (California, Louisiana and South Carolina) are now trying to collect eCommerce sales tax retroactively, as far back as five years.

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Helping SaaS Firms Make Sense Of eCommerce?s Tax Complexities

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Beyond the challenges of the pandemic that is forcing businesses to grapple with all manner of operating challenges, tax complexity has been building over the years on a global stage — and it’s only going to increase.

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What ‘Patchwork’ eCommerce Taxes Mean For Black Friday – And Beyond

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And in the wake of all those sales lies a pressing issue for merchants plying their trades online: figuring out the tax liabilities. At the same time, navigating tax policies is proving to be a complex business. As has been well-reported in this space, the regulatory landscape is changing for companies in the wake of the 2018 Supreme Court decision captioned South Dakota v. tax policy at Avalara , noted that this holiday season is the second one post-Wayfair.

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SMB Tax Complexity Preserves Role For The Human Accountant

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With the first tax season post-tax reform nearing completion in the U.S., Ongoing regulatory changes and persistent uncertainty mean that that importance will continue even outside of tax season, with challenges that even the most automated of accounting software solutions cannot always tackle. Tackling Tax. Tax reform in the U.S. ” However, it’s not just tax reform tripping up the small business accounting space.

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How Online Sales Tax Impacts Different eCommerce Models

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Since 1992, when eCommerce was still in its infancy, online retailers have not had to collect sales tax. That all changed last year with the Wayfair vs. South Dakota ruling that sought to level the playing field for brick-and-mortar stores. States can now tax sales by companies that do not have a physical presence within the state. Will this increasingly regulated online sales tax environment affect this growth? Online Sales Tax and Marketplaces.

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NRF On The Case For Revising eCommerce Sales Tax Laws

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The 2018 South Dakota v. Wayfair ruling gave states and cities permission to tax remote sellers and online marketplaces based on their economic participation in the state, regardless of whether they had physical presences. State and local governments aren’t satisfied with stopping their tax updates there, however, with many exploring if the Supreme Court ruling also opens the door to applying a wider range of taxes on remote merchants including corporate net income tax.

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As The Online Tax Man Cometh, Will Smaller Retailers Embrace Marketplaces?

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As commerce has, increasingly, moved into the digital realm, and even the smallest merchants have gone omnichannel, tax policy has evolved as well — although perhaps it may be more apt to say tax policy has scrambled to keep up. Seismic change in tax policy came last year in the form of a ruling from the Supreme Court, through the case captioned South Dakota v. Thus far, a bit more than a year after the ruling, tax policy remains fragmented.

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Who Pays A Higher Price For Online Sales Tax?

PYMNTS

The 2018 South Dakota v. Wayfair case that allowed states and individual cities to launch tax policies aimed at remote sellers and marketplaces is still reverberating in 2019 and will likely affect online retail in 2020. In Q3 2019, 14 states started collected online sales tax and 11 more followed in October. The new tax rollout was also blamed for a rise in cart abandonment. South Carolina, though, is attempting to retroactively collect taxes from Amazon.

Taxes 101

US Supreme Court Gives The Green Light For Online Sales Taxes

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States can collect sales taxes from online retailers thanks to a U.S. The 5-4 decision essentially overturns the court’s 1992 ruling that states can collect sales taxes only from retailers that maintain a physical presence in those states. North Dakota , argued that it was “obsolete in an era of eCommerce,” according to a Washington Post report. Or a company may lease data storage that is permanently, or even occasionally, located in South Dakota.”.

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Where The Tax Man Will Knock Louder Post-Wayfair — And Sooner

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The tax man looms across state and international borders, searching for digitally derived dollars due — scanning sites, platforms and even pop-up stores. Depending on how far afield they expand, those issues can span currencies, locally preferred payment methods and, increasingly, taxes. Last year, in the case of South Dakota v. That means they must navigate tax collection nuances.

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A Rough Map To The New World Of Online Sales Taxes

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Supreme Court opened the door to state collection of sales taxes for eCommerce purchases, questions swirled about software, Congressional action, marketplace sellers and how consumers would react. That’s likely because many important industry participants — both retailers and the support technology firms that operate the gears — have over the years come to accept that one day, one way, states would eventually get the OK to collect those taxes. A day after the U.S.

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Deep Dive: Wayfair’s Complex, Ongoing And Unexpected Effects On Retailers

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The 2018 South Dakota v. Wayfair’s case enabled cities and states to pass economic nexus laws that require out-of-state sellers to collect and remit taxes on local residents’ sales, and it permitted these jurisdictions to implement marketplace facilitator laws necessitating that eCommerce platforms collect and remit taxes on third-party merchants’ sales. . More than sales taxes . Unexpected tax obligations .

Economic Nexus Laws’ Unexpected Impacts On Restricted Substance Retailers

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eCommerce sales tax laws are having unintended consequences in the tobacco industry. State governments began rolling out economic nexus laws after 2018’s South Dakota vs. Wayfair ruling. These laws were meant to make online sellers face sales tax requirements similar to those for retailers with on-the-ground locations, putting both types of businesses on equal footing. percent tax on each imported premium cigar, limited to a maximum of about $0.40

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TaxCloud Announces New Stripe Integration

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sales tax obligations via the company’s sales tax application programming interface (API). Since the Supreme Court issued its opinion in South Dakota v. Wayfair last year, many online retailers now have to collect sales tax in additional states. The 5-4 decision in June 2018 essentially overturned the court’s 1992 ruling that states can collect sales taxes only from retailers that maintain a physical presence in those states.

Top News In Payments: Apple Shares Hit Record High; CA Denies Lending License For Sezzle

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Online Sales Tax’s ‘Pivotal,’ Post-Wayfair 2019 — And What Lies Ahead. The year 2019 may go down as a landmark in the annals of tax policy. Turns out that states are not done tweaking how sales taxes are levied on out of state sellers — and here’s what’s coming next.

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Confronting Wayfair’s Unanswered Questions

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The 2018 South Dakota v. tax laws, and some businesses and public sector stakeholders are now pushing back. The case ushered in a wave of state- and municipality-issued economic nexus laws that tax remote sellers based on economic activity rather than physical presence. The ruling also permitted marketplace facilitator laws that obligate eCommerce businesses to collect and remit taxes for sales made on their platforms.

MetaBank, Fiserv To Issue Preloaded Visa Cards For Stimulus Payments

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Reuters reported its sources confirmed MetaBank of South Dakota and Wisconsin-based Fiserv got the go-ahead following lobbying of the Internal Revenue Service (IRS) by payment industry groups. The U.S.

Top News In Payments: The Fed Takes A Closer Look At Big Tech; Goldman CEO Denies Apple Card Credit Bias Claims

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South Dakota Decision. Lawyer George Isaacson argued Wayfair’s side in the landmark 2018 South Dakota v. Isaacson has watched remote sales tax policies unfold since that time in a flurry of new laws that differ by state, and even municipality. In today’s top payments news, ongoing security concerns have caused the Federal Reserve to take a closer look at the Big Tech firms that serve the banking industry.

Casino Reopenings Draw In Gamblers Despite Online Gaming Surges

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Over in Deadwood, South Dakota, 13 of the 21 casinos in have opened again. Pennsylvania reported similar numbers, with tax revenues from brick-and-mortar gambling dropping to $50.5

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Top News In Payments: Zuckerberg Tells Congress Libra Fills A Void, PayPal Hits New Growth Milestone

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NRF On The Case For Revising eCommerce Sales Tax Laws. After the 2018 South Dakota v. Wayfair ruling, cities and states were given more leeway in taxing eCommerce operations that do business in their jurisdictions. Now, some are pushing for even more taxing abilities, and it’s causing contention in the industry. . Zuckerberg Tells Congress That Libra Fills A Global Payments Void. Facebook CEO Mark Zuckerberg went before the U.S.

Elavon’s Sage Pay Acquisition, Google’s Citi Deal, Facebook Pay Top This Week’s News

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South Dakota Decision. Lawyer George Isaacson argued Wayfair’s side in the historic 2018 South Dakota v. Isaacson has watched remote sales tax policies unfold since that time in a flurry of new laws that differ by state, and even municipality. It’s the end of the workweek and the PYMNTS Weekender is here to make sure you didn’t miss anything — and that you start off your weekend right, with the latest in payments and commerce.

Unpaid Student Loans Cost Workers Jobs, Drivers’ Licenses

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What’s more, in South Dakota, a borrower’s driver’s license can be suspended, which makes it close to impossible for them to get to work. Defaults are high, with borrowers facing all sorts of actions as lenders try to get the unpaid money, including filing lawsuits, garnishing wages, putting liens on properties and seizing refunds from taxes.

Apple Pay And A Decade Of Innovation Top Payments News This Week

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We have deep, data-supported dives on Apple Pay, the outlooks for payments innovation in the 2020s, web sales taxes and Amazon’s holiday shopping season news. NRF On The Case For Revising eCommerce Sales Tax Laws. The 2018 South Dakota v. Wayfair ruling gave states and cities permission to tax remote sellers and online marketplaces based on their economic participation in the state, regardless of whether they had physical presences. What a week it’s been!

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Wells Fargo’s Q2 Disappoints After Scandals

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The current quarter included a 10-cent per share income tax expense. . Second-quarter net income was impacted by a $481 million one-time expense resulting from a key Supreme Court decision related to online sales, South Dakota v. Wayfair, which impacted how states may collect taxes on sales made by out-of-state sellers. .

From Farce to Menace

Independent Banker

Even as nearly one-third of Americans are already members of a credit union, it seems there’s almost nothing the NCUA still won’t try to further expand the market reach and special tax-exempt privileges of the credit unions it supervises. Even more obviously absurd, one provision would allow community credit unions in seven states—Montana, Alaska, Delaware, North Dakota, South Dakota, Vermont and Wyoming—to serve their entire state. By Camden R.