In an article published on September 10, 2018 by Pennsylvania Institute of CPA’s CPA Now, state and local tax attorney Adam Koelsch discusses how Pennsylvania may be impacted by the U.S. Supreme Court’s recent ruling in Wayfair, overruling the so-called “physical presence requirement” for the collection of state sales tax and opening up remote online sellers to a sales tax collection obligation. First, some states will be required to remove limiting language from their tax statutes before they are able to reach remote sellers.
Pennsylvania, however, arguably has a sales tax statute that already reaches them. But, there are potential problems with applying the Pennsylvania statute to remote sellers because there is no safe harbor, no provision prohibiting retroactive application, and Pennsylvania is not a member of the SSUTA. Some legislation, administrative guidance or litigation will likely be necessary to fully understand the application of the Pennsylvania statute on internet sales, Koelsch says.