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Daily Tax Report: State

State of Wayfair: Five States Ripe for Constitutional Challenges

Nov. 26, 2019, 7:18 PM

Now that almost every state with a sales tax has enacted some type of law aimed at taxing remote sellers following the Supreme Court’s Wayfair ruling, some are asking which state programs are legally vulnerable.

The Tax Foundation is putting down bets on five states: Alabama, Colorado, Kansas, Louisiana and Texas. The Washington, D.C.-based think tank sees the five as ripe for constitutional challenges because their Wayfair-related laws could be seen as either placing undue burdens on remote sellers engaged in interstate commerce, or imposing tax obligations in a discriminatory fashion.

“These five states have rather fundamental flaws,” Jared...

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