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A New World for State and Local Sales Taxation

First, there was the express lane checkout treatment of federal tax reform with all the attendant unsettled implementation and administrative issues. Then, there was the TV cliffhanger finish to Minnesota’s 2018 legislative session that ensures everyone will tune in next season for the thrilling conclusion to the state’s federal conformity efforts. And if that wasn’t enough to keep tax practitioners hopping, Department of Revenue staff scrambling, and the billable clocks of lobbyists spinning, the U.S. Supreme Court has now reversed 50 years of precedent and declared that physical presence in a state is no longer needed to require sellers to collect and remit sales taxes – knocking down the door to state and local taxation of e-commerce. It’s a double shot of espresso in an already highly caffeinated tax policy environment.