Member Since: Jan 2nd 2019
Partner TaxOps, LLC
Sep 7th 2019
Gail - I don't think home rules can rely on the Wayfair decision as that decision required simplified reporting at the state level, and was for states not local jurisdictions. I think HR cities might try to hang their hat on Wayfair - but that would hardly be what the Supreme Court was intending given their desire for simplifcation and we both know that that is not the case with home rules.
The Supremes required the following six items (1) a safe harbor excluding those who sell only limited amounts in South Dakota; (2) no retroactive tax collection; (3) single, state-level administration of sales taxes; (4) a simplified tax rate structure; (5) uniform definitions and other rules; and (6) access to software provided by the state, with immunity for those who rely on it. A state that attempts to collect sales taxes on e-commerce without these provisions will almost certainly face a legal challenge, with challengers of such laws able to point to the rationale in the Wayfair ruling as guidance of what’s permissible.