There are exciting times, or at least interesting times, ahead for the debate surrounding sales tax nexus.
States, growing weary of the inability to require remote sellers to collect sales tax, continue to take matters into their own hands.
It’s been nearly 25 years since the US Supreme Court ruled in the Quill case establishing the substantial physical presence standard by which sales tax collection and remittance obligations are determined. During recent history, states have taken steps that blur the line in terms of what substantial physical presence really is – some states adding provisions to account for click-through nexus for example. Now, states are going rogue, and blatantly ignoring the Quill standard – and opening the door to legal challenge potentially escalating to another US Supreme Court ruling.