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Tax

Wayfair (South Dakota v. Wayfair)

The 2018 Supreme Court decision that established economic nexus for sales tax, eliminating the physical-presence requirement.

Before Wayfair (2018), states could only require sales tax collection from sellers with physical presence. Wayfair allowed economic nexus — typically $100K in sales or 200 transactions per year creates a sales tax obligation in that state.

Most states have adopted similar thresholds. Remote and online sellers now potentially have collection and filing obligations in 10–45+ states depending on their distribution.

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