State of Wayfair: Drawing the Line on Corporate Taxes

State revenue directors considering strategies for using the Wayfair ruling for their income taxes will no doubt be asking themselves “Where do I draw the line?”

And the answer may not be the same line the U.S. Supreme Court drew in South Dakota v. Wayfair, which focused primarily on economic nexus—the volume of business for demonstrating economic presence in a particular state—for sales taxes purposes.

Darien Shanske, a professor at the University of California Davis School of Law, said states may establish different thresholds for their sales tax codes, and their various corporate tax codes. While most states have ...