Wayfair decision likely to impact small businesses most
By Gary Hunt, OSCPA senior content editor
The U.S. Supreme Court’s June 21 “Wayfair” decision is likely to have a disproportionate effect on smaller, “mom and pop” type businesses, one expert says.
The court ruled that states can assert nexus for sales and use tax purposes without requiring a seller’s physical presence in the state.
“Very rarely will you ever see just a pure brick and mortar store anymore,” said Rich Fry, J.D., MT. a tax attorney with Buckingham, Doolittle & Burroughs in Akron. “All the small vendors – or at least the vast majority of them – have an online presence and try to make sales online. Now they’re going to have the additional compliance cost to deal with collecting sales tax outside of their home state.”
Read the article and listen to the podcast to hear more, including why the ruling might not be the boon for local business that some have predicted.
Buckingham Partner, Rich Fry, is a Partner in the Taxation Practice Group and helps clients with state and local tax compliance and controversies, including Ohio and multistate sales/use tax, commercial activity tax, and personal income tax issues. Contact him with any questions or comments at rfry@bdblaw.com or 330.258.6423.