The Wayfair decision will be felt for years to come.
With over 9.5% of retail sales happening online. We can buy products across the country with the click of a button.
The Wayfair decision comes down to “physical location not being required for taxation”.
What does this really mean?
Before the internet, Sales Taxes are decided by states / counties / cities to tax their own citizens purchases to fund government budgets.
To make the whole process easier, states require businesses to collect and pay the taxes (unlike income tax, each citizen handles it themselves) to the agency owed.
The internet makes it so we can SUPER EASILY buy things from other states. Each government could require their citizens to report all purchases in-state and out-of-state and then pay those taxes.
Unfortunately those states are attempting force business from all other 49 states to track and record purchases for THEIR CITIZENS and then pay those taxes.
So this really means that any new business is required to manage sales taxes for all states/counties/cities because they’re statistically likely to receive orders from a majority of citizens outside their own state.
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