Noncompliance can result in stiff per-occurrence penalties. Colorado's requirements were upheld by the 10th Circuit U.S. Court of Appeals; the U.S. Supreme Court denied certiorari. [11] While the states can use the reported information to assess use tax against the consumer, these requirements are primarily intended to induce sellers to register for, collect, and remit sales tax in the state. A few states, including Pennsylvania, explicitly provide an election between the notice and reporting regime and seller registration. CAUTION : Some states are beginning to use transaction data collected from sellers (through formal or informal processes) to pursue purchasers for use tax liability. [12] Assessing the Impact of Wayfair The Wayfair decision affects thousands of state and local tax-collecting jurisdictions across the country. The most immediate impact will be on sellers with a significant virtual or economic presence in a state that asserts economic nexus.