What South Dakota vs. Wayfair Might Mean for Your eCommerce Company

March 4, 2019


The Supreme Court ruling on South Dakota v. Wayfair has created a secondary nexus for sales tax. Primarily, sales tax nexus is determined by the state in which you have a physical store. Yet, South Dakota vs. Wayfair has opened the door to a new economic nexus allowing states to determine their own definition of nexus based on sales happening in their state. This means that a company that has online sales that meet that state’s nexus definition will now be subject to paying that state’s sales taxes. South Dakota has created a precedent for other states to hear cases to redefine the nexus laws for their state.


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