If South Dakota is successful, could remote sellers have nexus in all states that currently have economic nexus laws?
The impending decision by the Supreme Court on economic nexus could impact many remote sellers. Vice President of Tax Policy and Government Relations Scott Peterson, explains whether remote sellers will have nexus in all states with existing economic nexus laws if South Dakota is successful in their case with the Supreme Court.
"There are half a dozen states that have gone ahead and adopted a law like South Dakota’s law, hoping that if South Dakota wins, then their laws will just automatically be legal. It is likely that that will be the case. We don’t know what the Supreme Court is going to say in this case. We don’t know if they’re just going to approve South Dakota because it’s specific to South Dakota. If they do something that is specific to the way South Dakota did it, all the states that have a current economic nexus law will have to look at the law, see how their law compares to South Dakota law, and if it’s different they’re going to have to change it. But it is very likely that this won’t take much time, and anybody who is affected by the South Dakota law will very likely be quickly affected by all the other states’ laws that have that identical law."