Manufacturing across state lines – What manufacturers need to know about multistate income taxes

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Abstract: If a manufacturing business operates across state lines, it’s important to understand state income tax obligations. Following the U.S. Supreme Court’s 2018 decision in South Dakota v. Wayfair, Inc., manufacturers have focused on sales tax liability. But the recent explosion of remote work, together with revised guidance from the Multistate Tax Commission (MTC), may raise income tax issues. This article reviews the importance of nexus and the MTC guidance on the topic. Source: South Dakota v. Wayfair, Inc., No. 17-494, June 21, 2018; Public Law 86-272.