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D.C., West Virginia Now Require Remote Sellers to Collect Sales Tax


Several jurisdictions now require out-of-state sellers to collect and remit sales tax starting Jan. 1, 2019: Georgia, Iowa, Nebraska, Utah, West Virginia, and Washington, D.C. That same date, new sales tax collection requirements for marketplace facilitators will take effect in Alabama. States were once prohibited from taxing sales by businesses with no physical presence in the state. However, the U.S. Supreme Court overruled the physical presence restriction in its decision in South Dakota v. Wayfair, Inc. (June 21, 2018), finding it to be “unsound and incorrect.” The court determined that an out-of-state business could establish a sales tax collection obligation through “economic and virtual” contacts with a state, or economic nexus. Read more at CPA Practice Advisor.