On June 21, 2018, the South Dakota v. Wayfair decision overturned a physical presence rule that prevented states from taxing sales by out-of-state sellers. Prior to the Wayfair case, states could require a business to register then collect and remit sales tax only if the business had a physical presence in the state. In repealing the physical presence requirement, the Wayfair decision enabled states to tax remote sales — sales by businesses with no physical presence in the state. It’s important to note that physical presence continues to establish nexus, the connection that allows a state to impose a tax obligation on a business. The Wayfair ruling simply allowed states to enforce economic nexus as well.