Back to top

Click here to go back

Will prices change due to South Dakota v. Wayfair Case?

Posted by Admin Posted on July 24 2018

       You may find a slight increase in the total of your online shopping cart in the future. Recently, the U.S. Supreme Court overruled the requirement that a retailer must have physical presence in a state in order to be required to collect sale tax in that specific state. Case South Dakota v. Wayfair brought this challenge as South Dakota believed that they lost $48 to $58 million annually because out-of-state sellers failed to collect sales tax. It is now up to the state if they require retailers without a physical presence to collect and remit sales tax. With the start in South Dakota, many states are following this tax structure. As of May 30, 2018, Iowa Governor Kim Reynolds signed an extensive state tax reform bill.  Large sellers will now be required to collect and remit sales tax even if they do not a have a physical presence in a state. Not everyone will be subject to this tax though; small sellers who do not deliver more than $100,000 of goods or services into the state or engage in less than 200 transactions will not be subject to collect sales tax. Starting in 2019, be prepared to spend a couple extra pennies while checking out online.

Article written by Jennifer Klenken in our Spencer Office

 

Add New Comment