Wayfair Agreement

Jennifer McLoughlin: Scott, who passes over to you with your background on Streamline, what do you think of the situation in which, since the Wayfair decision, we have not seen states jump aboard the agreement? Technically, the question in the Wayfair Supreme Court was the constitutionality of the South Dakota Sales Tax Act. Under the Act, only remote sellers with a turnover of at least $100,000 must be taxed on customers in South Dakota or 200 or more in sales to South Dakota customers within a year. The law prohibits retroactive liability. In addition, South Dakota is a member of the Streamlined Sales and Use Tax Agreement, which is an agreement between 24 states to propose simplified and consistent methods for collecting VAT. Jennifer McLoughlin: You mentioned Brad, the Streamlined Sales and Use Tax Agreement, and you found that no state has joined this agreement since the U.S. Supreme Court decision. Why do you think that no state has joined the agreement since that decision? In particular, since Justice Kennedy`s opinion emphasized this agreement as one of the factors suggested by the South Dakota regime, it was likely admissible. II. Online sellers have an unfair advantage because they are tax-exempt: the more you went the size of the business, the less comfort there was, whether they were compliant or not. The description of one`s own experience is exactly what we see and hear. We don`t have many people calling us and saying, “South Dakota just called us and told us it was time to collect their TAXE.” What we are hearing is, “My accountant just called me and said, “I think you have a problem.

We should talk about increasing VAT compliance. I think states want to make sure that they make it easier for internet sellers to comply with their revenue tax laws, which will also improve their own revenue prospects. As I said, states believe that at some point, more resources will focus on identifying and matching non-candidate sellers. In the short term, you probably won`t see many just because there are no resources to do it here. But one day it will be a great need. I think the states will also be interested in eliminating the zero return situation, in which you have a seller who is technically required to register, but they make wholesale sales or their sales are so small dollars, but a high volume, so they can exceed the transaction threshold, but that only leads to minimal tax transfers. Can some of these situations be eliminated in order to reduce the administrative burden on both sellers and tax authorities? But in the meantime, yes, it could be a little chaotic. Of course, the Wayfair decision changed suddenly when the decision was made in June 2018. So it will take a big culture change to have a voice.

It`s just amazing the effect it`s had on dry cleaners. Normally, I wear dry clothes almost every day. In these times, I never wear clean dry clothes. Dry cleaning is dying. Not because they are not open, because they are all open, is because no one wears clothes that need to be cleaned dry.

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