For 50 years, out-of-state sellers have relied on the “physical presence” test to determine if they had sales and use tax nexus in a particular state.  And for 50 years, those states have been struggling with that test.  The physical presence test shielded most out-of-state sellers from having to worry about collecting state sales and use taxes.

That all changed with the Supreme Court’s decision in June 2018 in South Dakota vs. Wayfair.  The court said that economic nexus was the new standard, and eliminated the physical presence test as protection for sellers.  This decision has opened the way for the states to assert that most interstate sellers now DO have nexus in their states.  The ramifications may be overwhelming for many businesses.  

In this program, you’ll learn the basics of nexus, the foundation of the legal issues, how physical presence shielded most out-of-state sellers, how small businesses are protected under the new decision, what states and Congress are doing, and what YOU need to do.

Learning Objectives
  • Discover what “nexus" means.
  • Discover what tax professionals call “Wayfair”.
  • Explore the legal history behind the Wayfair decision.
  • Explore how to prepare your business for the post - Wayfair world 
  • Discover the features of South Dakota’s tax structure and how that may not work for other states.

 

Last updated/reviewed: August 26, 2023
29 Reviews (133 ratings)

Reviews

4
Member's Profile
I am a CPA and was frustrated by the recommendations to call a professional --I am the professional people would call, and I was hoping the course would provide me with the information to do that part of my job. The information provided was good though. I just need a more advanced course.

5
Anonymous Author
Good introduction to Nexus issues. Lays out what some previous court cases were and stresses the importance of doing everything properly. Good summary of questions that need to be answered if you engage in interstate commerce. Would like to see more courses on this subject.

4
Member's Profile
=This is a thorough course outlining court cases leading up to the Wayfair decision, criteria addressed in Wayfair, and other factors to consider when determining the impact of the myriad state laws that may apply to interstate sellers.

5
Anonymous Author
I haven't paid much attention to Sales Taxes in a few years since I no longer work around them, so this was useful in updating my knowledge with some of the more recent changes and some history I wasn't aware of.

5
Anonymous Author
Excellent instructor with great information on this important topic. Sales tax is becoming increasingly important in my daily activities so this was a good refresher and presentation on this topic.

4
Member's Profile
It's been awhile since I've had to deal with state taxes but we are beginning to do some in South Dakota and it was pertinent to hear specifically some rules that are applicable there.

4
Anonymous Author
Good course to get an understanding of what economic nexus is after the Wayfair ruling and how to proceed. Helpful for anyone who deals with sales tax or use tax.

5
Member's Profile
This was very informative and very up to date. I feel like this 60 minute class gave me exactly the knowledge I need to speak about sales and use tax today

4
Member's Profile
Good overview of topics I had heard about but didn't have definition or understanding of, eg definition of Nexus, voluntary disclosure, Commerce clause.

4
Anonymous Author
Good overall summary of sales and use tax issues as it relates to Wayfair case. Would liked to have seen a matrix table with more cases and outcomes.

5
Member's Profile
The instructor organized this course well by first discussing the historical precedent and then contrasting it with the recent Wayfair decision.

5
Member's Profile
Good course explaining Nexus, the course summarized some of the things business should look out for when doing business in other states.

5
Member's Profile
Good update on Sales Tax and reminder that changes are constantly occurring. The court case information was especially helpful.

5
Member's Profile
Great topic of pretty recent situations. Thank you for bringing a real life situation to this evolving sales tax issue.

5
Anonymous Author
Awesome overview -- the history of how the laws have changed over time and practical guidance were very helpful.

5
Member's Profile
A very informative introductory course. Really liked the presenter: clear, to the point and not boring.

5
Anonymous Author
Nice update on sales tax nexus law. Source materials were well put together to support the objectives.

4
Member's Profile
I enjoyed this course, and I thought the overview over the Wayfair case was informative and helpful.

5
Anonymous Author
Good presentation and great instructor. Will be watching for the changes coming in my state.

5
Anonymous Author
Great course - Jim's presentation on sales tax is worthwhile in the light of Wayfair.

4
Member's Profile
Great Comprehensive review of this decision to those unfamiliar with SALT concepts.

5
Anonymous Author
Good overview of nexus and examples of things to look out for in the coming years.

5
Anonymous Author
Excellent from an engaging instructor. Will be watching for additional updates.

3
Anonymous Author
Very general, but did help with background of Wayfair and sales tax changes.

3
Anonymous Author
It was fine. I thought it would go more into the details of Wayfair vs. SD.

5
Anonymous Author
It was informative, I am glad there is CPE for this recent ruling

5
Anonymous Author
Had good information to help make a better informed decision.

4
Anonymous Author
Good program. Easy to watch. Funny presenter. Thank you.

5
Anonymous Author
Good for an intro review to the history of sales tax.

Prerequisites
Course Complexity: Foundational

No advanced preparation or prerequisites are required for this course.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to Updated Sales and Use Tax Nexus in the aftermath of South Dakota vs. Wayfair5:44
  What Has Changed8:40
  The Physical Presence Test7:29
  Court Cases10:22
  Rules, Sales Tax & Changes Coming10:09
  Should You Worry?5:54
  What Should You Do & Conclusion9:29
CONTINUOUS PLAY
  Updated Sales and Use Tax Nexus in the aftermath of South Dakota vs. Wayfair 57:46
SUPPORTING MATERIALS
  Slides: Updated Sales and Use Tax Nexus in the aftermath of South Dakota vs. WayfairPDF
  Updated Sales and Use Tax Nexus in the aftermath of South Dakota vs. Wayfair Glossary/IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONS quiz
 FINAL EXAMexam