In Wayfair, the US Supreme Court held that the dormant Commerce Clause requirement of "substantial nexus" no longer mandates a "physical presence" requirement in the context of South Dakota's sales tax nexus law. In reaching this outcome, Wayfair potentially blurs historical distinctions between Due Process and Commerce Clause nexus, leaving businesses to contemplate going forward the extent to which the Commerce Clause may (or may not) limit the states' power to tax and impose burdens on interstate commerce. In addition, various international tax provisions within the federal Tax Cuts and Jobs Act raise potential constitutional questions when the federal changes are applied at the state level. This panel of state tax specialists will consider the tax law implications of today's Commerce Clause, its role in future state and local tax controversies and arguments, and what protections the Constitution and Congress may afford for multistate businesses in years to come.
