Five years after South Dakota v. Wayfair, Inc., 585 U.S. 162 (2018) ¹, every state with sales tax (45 states plus DC) has adopted economic nexus rules. The South Dakota benchmark of $100,000 of in-state sales OR 200 transactions has become the common starting point, but two-thirds of states have dropped the 200-transaction prong, and several have raised the threshold to $500,000 (California, New York, Texas). For our multistate operating clients, the cumulative compliance burden is now substantially more material than the federal income tax burden.
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