Wayfair Decision Will Have Wide Ranging Implications for Companies Doing Business in Multiple States

  |  July 10, 2018

In a 5-4 ruling on June 21, 2018, the U.S. Supreme Court overturned a 1992 precedent that barred states from requiring an out-of-state seller with no physical presence to collect sales tax on a sale to a resident of the state. Now, states stand to collect potentially billions of dollars in sales taxes from remote sellers who meet certain minimum standards. The Court remanded the case to South Dakota’s Supreme Court for a finding of whether other issues may block the tax. However, it is unlikely that any issues will surface.

In overturning Quill Corp. v. North Dakota and National Bellas Hess, Inc. v. Department of Revenue of Ill., the Court acknowledged that brick-and-mortar stores have been at a competitive disadvantage to out-of-state sellers. And as technology has become more involved in commerce year after year, it has created incentive for states to challenge the physical presence nexus rule. Read more. Read More

South Dakota Wins in Supreme Court Decision on South Dakota v. Wayfair

  |  June 21, 2018

The U.S. Supreme Court today handed down a decision on the highly anticipated South Dakota v. Wayfair case, which challenged South Dakota’s collection of sales tax from out-of-state businesses that do not have physical presence in the state but that sell and deliver into South Dakota tangible personal property, products transferred electronically, or services.

South Dakota passed a law in 2016 that set off a dramatic and market-altering shift in taxation of online sales, one that concluded with today’s Supreme Court’s 5-4 decision... read more. Read More

Tax-Free Purchases Online May Come to an End with Supreme Court Ruling

  |  January 24, 2018

On January 12, 2018, the United States Supreme Court made the decision to hear State of South Dakota vs Wayfair Inc., Overstock.com, Inc., and Newegg Inc. In the case, Wayfair, Overstock, and Newegg challenged South Dakota Senate Bill 106, which requires remote retailers with annual in-state sales exceeding $100,000, or 200 separate transactions, to collect and remit sales tax starting April 1, 2016.

The Supreme Court’s decision in State of South Dakota vs Wayfair Inc. will affect state nexus laws for remote sellers across the United States. Read more. Read More