"During our 25 years in business, I've lived in fear of today's decision. We have employees and, thus nexus, in 6 states. Each time we hired someone in a state, we immediately registered to pay sales taxes.
But doing so required further tasking our sales-tax processing company at, for us, a very high price, to process yet an additional state's sales tax payments. It also led, as I discovered to my horror, to our needing to file a corporate tax or gross receipts tax return in each of the 6 states, annual reports in several of the 6 states, reports in several states about workers compensation and unemployment insurance and a variety of "small" fees. The compliance cost of hiring the sales-tax processing company, paying our accountant and responding to the weekly and sometimes daily letters about filing this form or that is already costing my company $50,000 a year.
$50,000 a year is a huge sum for a small company, especially one like mine that is investing every penny it earns to grow and just breaking even. Based on the Supreme Court decision, my company's tax compliance bill as opposed to tax bill could easily come to $150,000 if, as I suspect, states will be emboldened by this ruling and apply what they call "economic nexus" and levy corporate income or gross receipts taxes to any company selling any products to any entity in their states."
But doing so required further tasking our sales-tax processing company at, for us, a very high price, to process yet an additional state's sales tax payments. It also led, as I discovered to my horror, to our needing to file a corporate tax or gross receipts tax return in each of the 6 states, annual reports in several of the 6 states, reports in several states about workers compensation and unemployment insurance and a variety of "small" fees. The compliance cost of hiring the sales-tax processing company, paying our accountant and responding to the weekly and sometimes daily letters about filing this form or that is already costing my company $50,000 a year.
$50,000 a year is a huge sum for a small company, especially one like mine that is investing every penny it earns to grow and just breaking even. Based on the Supreme Court decision, my company's tax compliance bill as opposed to tax bill could easily come to $150,000 if, as I suspect, states will be emboldened by this ruling and apply what they call "economic nexus" and levy corporate income or gross receipts taxes to any company selling any products to any entity in their states."