June 2018 Update

The Supreme Court’s decision to overturn Quill has made a year fraught with uncertainty even more challenging for tax practitioners. The Bloomberg Tax news and editorial teams have been hard at work since oral arguments were made in April providing comprehensive coverage of state tax developments and expert analysis leading up to this historic decision – available on our Wayfair Watch page*.

We are providing our customers with a first look at what may be in store (no pun intended) for internet retailers as States look to enact new tax policies in the search for new sources of revenue. If you missed our Decision Day Webinar that had leading state tax experts, you can catch it here:

Watch the Decision Day Webinar >>

Highlights from our Decision Day Webinar.

  • The Wayfair decision makes Congressional intervention more likely. As Mark Nachbar (Ryan, LLC) noted, Sen. Wyden (D-Ore.) expressed concerns about the decision leading to an “underground private tax collection bureaucracy” and has promised to act to protect Oregonians.
  • The panelists generally agreed that litigation may be an issue, especially for states that adopt more burdensome requirements than South Dakota’s, or states that require retroactive payments. However, Art Rosen (McDermott, Will & Emery) said that his hope is that since states don’t need to have test cases now, they’ll agree to collect taxes prospectively.”
  • There were also concerns expressed that states will feel more “emboldened” to look beyond their state borders to satisfy their revenue needs and increase the burden on out-of-state companies.
  • The panelists also predicted that there will be a move amongst platform providers, like Etsy, to collect taxes on behalf of their sellers. Joe Garrett (Ala. Dept. of Rev.) said that collecting taxes would make the platforms more attractive to sellers.
  • The panelists agreed sellers should be prepared in the wake of this decision for the impact on them. Shirley Sicilian (KPMG) said that sellers need to know what their “footprint” is in states that they sell into, what the laws are in those states, and what the applicable deadlines are. Steve Wlodychak (EY) also noted that people need to keep an eye on Congress, as they have the authority to act on this issue.

And at the federal level, make sure to visit Tax Reform Watch as we track potential technical corrections to the TCJA.

We are committed to keeping Bloomberg Tax the resource you rely upon when change is imminent. I welcome your feedback on Bloomberg Tax or this newsletter. Email me at taxmarketing@bna.com.