U.S. Supreme Court Takes Up Online Tax Case

The U.S. Supreme Court recently agreed to hear a case that could change way states tax online sales.  The case, South Dakota v. Wayfair, Inc., challenges the U.S. Supreme Court’s 1992 decision in Quill Corp. v. North Dakota.  In Quill, the U.S. Supreme Court reaffirmed that states could only impose their taxes on those businesses with nexus with the state, and stated that only businesses with a physical presence in a state had nexus.  In the years since, until now, the U.S. Supreme Court has not chosen to hear any of the cases presented on the nexus issue despite the rise of online sales and the actions of state governments.  This blog post explores the nexus issue the U.S. Supreme Court will consider and its possible implications for taxpayers. The South Dakota Bill In 2016, South Dakota passed a law that stated that certain remote sellers with no physical presence in South Dakota were required to collect and remit South Dakota sales tax.  The…

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