Unique Local Compliance Challenges Post-Wayfair: Determining Economic Nexus, Exemptions, Constitutional Protections

Five years later, the U.S. Supreme Court decision South Dakota v. Wayfair Inc. continues to significantly impact state and local taxation. Post Wayfair, every state that assesses sales tax has implemented sales and transaction thresholds in light of the decision. Determining nexus standards by jurisdiction is an arduous process. Home rule states allow local authorities to set their own guidelines and collect sales tax separately from the state's revenue department. These localities can and do establish economic nexus thresholds that differ from those of the state's income tax division. Alaska, for example, does not impose a state income tax but does allow more than 100 local jurisdictions to impose and collect taxes, establishing their own guidelines and tax rates.

Understanding a company's local tax burden is only the first step. Determining if specific exemptions apply to a business' service or product and obtaining the exemption certificate can provide significant tax savings and avoid future complications. It is critical that multistate businesses and SALT advisers are familiar with the unique local compliance burdens within states and understand where problems may arise.

Listen as our experienced panel of state and local tax advisers outlines specific nuances of local taxes in specific states post-Wayfair.

1. The impact of Wayfair on local tax assessments
2. Unique compliance burdens
3. Common and specific exemptions available
4. Required registrations and licensing
5. Constitutional protections
6. Specific states
   1. Alabama
   2. Alaska
   3. California
   4. Colorado
   5. Louisiana
   6. Missouri
   7. Texas
   8. Washington
7. Use taxes
   1. Alabama
   2. Colorado
   3. Louisiana

The panel will cover these and other critical issues:

• Identifying unique local compliance obligations and where local tax issues may arise
• Constitutional protections that remain post-Wayfair to challenge jurisdictional tax assertions
• Colorado SUTs system, destination reporting and home rule challenges
• Economic nexus rules and how they apply to local taxes
• Registrations, licensing, and required forms for sales tax collection and remittance

Learning Objectives

After completing this course, you will be able to:

• Identify economic nexus requirements in specific states
• Determine when local tax registration is required in specific states
• Decide when P.L. 86-272 can be invoked
• Ascertain how state-specific exemptions can help circumvent local tax obligations

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of SALT taxation, nexus and apportionment as it applies to multi-state businesses.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.