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STATEMENT RELEASE: James Mad⁠i⁠son Ins⁠t⁠⁠i⁠⁠t⁠u⁠t⁠e Releases New Repor⁠t⁠ W⁠i⁠⁠t⁠h Na⁠t⁠⁠i⁠onal Taxpayers Un⁠i⁠on Founda⁠t⁠⁠i⁠on On Remo⁠t⁠e Sales Tax Collec⁠t⁠⁠i⁠on Pol⁠i⁠cy

By: The James Madison Institute / 2021


January 12, 2021

CONTACT: Logan Elizabeth Padgett



TALLAHASSEE – A new report by The James Madison Institute in partnership with the National Taxpayers Union Foundation entitled “On Wayfair, Tread Lightly” examines the “economic nexus” rules implemented in states as a result of the 2018 South Dakota v. Wayfair Supreme Court decision and outlines the steps that Florida legislators should take and, more importantly, the pitfalls they should avoid in crafting legislation to impose tax obligations for online retailers.

The report details many common mistakes made by other states that rushed to impose regulations in the wake of the 2018 court case, hoping to receive a massive windfall of tax revenue that ultimately ended up being far less than projected and often resulted in burdensome policies that hurt small retailers.

E-commerce has grown in importance during the COVID-19 era, as lockdowns and social distancing have increased the demand for online retailers. With this in mind, some analysts have declared that post-Wayfair tax rules are crucial for state budgets to stay afloat. However, Florida should learn from the mistakes of others and be mindful of the potential harm that poorly crafted legislation can do to small businesses that are even less equipped to deal with additional expenses due to the pandemic.

“In implementing economic nexus rules, Florida should take the time to receive proper input and examine all options to ensure that the mistakes made by other states are not repeated. Without a false sense of urgency, the Sunshine State can craft legislation that implements these new regulations in the least harmful and burdensome manner possible.” – Andrew Moylan, Executive Vice President, National Taxpayers Union Foundation; Adjunct Scholar, The James Madison Institute

“When it comes to remote sales tax legislation, one size does not fit all. Florida has the fourth-largest economy in the United States (and 17th largest in the world), so regulations that are in place in states like South Dakota could be potentially disastrous for us. We must take the time to produce thoughtful policy that allows for a proportional minimum threshold to protect smaller Florida businesses that lack the tax infrastructure to comply with new tax regimes.” – Sal Nuzzo, Vice President of Policy, The James Madison Institute

To read “On Wayfair, Tread Lightly,” click here.



The James Madison Institute is a 501(c)3 organization dedicated to the advancement of free markets and liberty. The Institute conducts research on such issues as criminal justice, health care, taxes, and regulatory environments.

National Taxpayers Union Foundation (NTUF) is a nonpartisan research and educational organization that shows Americans how taxes, government spending, and regulations affect them. NTUF has extensively researched and testified on state sales tax laws as part of its Interstate Commerce Initiative, which examines state efforts to tax and regulate entities outside their borders.