Wayfair: Substantial Nexus and Undue Burden

6 Pages Posted: 22 Sep 2018

See all articles by Adam B. Thimmesch

Adam B. Thimmesch

University of Nebraska College of Law

Darien Shanske

University of California, Davis - School of Law

David Gamage

Indiana University Maurer School of Law

Date Written: July 30, 2018

Abstract

This is the first of a series of essays wherein we analyze the U.S. Supreme Court’s decision in South Dakota v. Wayfair. In this essay, we tackle some of the more immediate interpretive questions raised by the Wayfair opinion, such as how a state should approach substantial nexus. As part of our analysis, we offer advice to state governments. Specifically, we recommend that states take note of the features of South Dakota’s law that appealed to the Court and replicate or improve on these to the extent possible. We advise states to consider simplifying their sales tax systems (and potentially joining the Streamlined Sales and Use Tax Agreement if they have not already done so), offering full and adequate reimbursement for compliance costs (especially for smaller vendors), and offering free compliance software and immunity for vendors who properly rely on such software.

Keywords: e-commerce, sales tax, use tax, wayfair, quill

JEL Classification: K34

Suggested Citation

Thimmesch, Adam B. and Shanske, Darien and Gamage, David, Wayfair: Substantial Nexus and Undue Burden (July 30, 2018). State Tax Notes, Vol. 89, No. 5, 2018. Available at SSRN: https://ssrn.com/abstract=3242247

Adam B. Thimmesch

University of Nebraska College of Law ( email )

103 McCollum Hall
P.O. Box 830902
Lincoln, NE 68583-0902
United States

Darien Shanske

University of California, Davis - School of Law ( email )

400 Mrak Hall Dr
Davis, CA CA 95616-5201

David Gamage (Contact Author)

Indiana University Maurer School of Law ( email )

211 S. Indiana Avenue
Bloomington, IN 47405
United States

HOME PAGE: http://www.law.indiana.edu/about/people/bio.php?name=gamage-david

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