WAYFAIR Update - Michigan responds
Michigan Department of Treasury recently announced that in an effort to align with the ruling in the Wayfair decision (South Dakota v. Wayfair, Mich. Dept. Treas., 08/01/2018), effective October 1, 2018, Michigan will require remote sellers, with sales exceeding $100,000 or having more than 200 transactions to Michigan purchasers in the previous calendar year, to collect and remit sales tax. The Department has also issued guidance addressing "economic presence" sales and use tax nexus standards for remote sellers.
By all accounts, more states will continue to adopt bright line nexus standards related to sales tax, creating additional complexity in managing nexus and state sales tax compliance. As an example, Michigan is joined only by Alabama, Hawaii, Indiana, Maryland, North Dakota, Rhode Island, Texas, and Wisconsin to have published guidance on sales tax nexus standards post Wayfair.