The Supreme Court's Wayfair Decision: What it Means for Your Dealership-The Supreme Courts Wayfair Decision: What it Means for Your Dealership

Video Transcription

Video Summary

In this video, Rex Collins, a principal at HBK CPAs and consultants, discusses the impact of the Supreme Court's Wayfair v. South Dakota decision on equipment dealers. The decision overturns the previous physical presence standard for sales tax nexus and allows states to require out-of-state retailers to collect and remit sales tax, based on certain economic thresholds. Collins explains that many states have already implemented economic nexus rules or are in the process of doing so. He highlights the complexity of navigating the different sales tax rules and rates in various jurisdictions, and emphasizes the importance of tracking all transactions and obtaining valid exemption certificates. Collins also addresses the issue of drop shipping, where the seller accepts an order and has the manufacturer ship the product directly to the customer. He notes that the supplier must obtain a valid resale exemption certificate from the dealer to avoid liability for sales tax. In addition, Collins discusses the potential for states to adopt economic nexus standards for other taxes, such as income taxes. He advises dealers to stay informed about new regulations and to seek professional advice to ensure compliance. Collins concludes by offering his contact information for further questions and providing access to a guidance document for tracking economic nexus requirements in different states.

Keywords

Rex Collins

Wayfair v. South Dakota

equipment dealers

sales tax nexus

economic thresholds

valid exemption certificates

drop shipping

resale exemption certificate

income taxes

compliance

new regulations