Businesses engaged in interstate commerce are subject to tax in every state where they operate.

Question

Quizplus · Accepted Answer

Businesses engaged in interstate commerce are only subject to tax in the states where they have a physical presence, such as a store, office, or warehouse. This is based on the Supreme Court's decision in the case of South Dakota v. Wayfair, Inc. in 2018, which overturned the previous precedent that required a business to have a physical presence in a state before that state could impose a sales tax on the business. However, this new standard is not equivalent to operating in every state where a business sells goods or services.

Businesses Engaged in Interstate Commerce Are Subject to Tax in Every