Insights on “South Dakota v. Wayfair” SCOTUS decision
Guidance and insights to help remote sellers affected by sales tax compliance changes.
The Effects of Wayfair
On June 21, 2018, the U.S. Supreme Court ruled in favor of the state in South Dakota v. Wayfair, a case in which South Dakota sought to have a statute imposing economic nexus standards on remote sellers upheld by the Court. In its decision, the Court concluded that the physical presence standard that had existed for decades for sales and use tax nexus was “unsound and incorrect.” The Court overruled its prior decisions in National Bellas Hess and Quill, thus opening the door for states to require remote sellers to collect and remit sales and use taxes.