Remote sellers got a boost on news from South Dakota?s Supreme Court this month. On Sept. 13, 2017, the South Dakota Supreme Court decided South Dakota v. Wayfair, Inc., unanimously agreeing with a state circuit court finding that the state?s economic sales and use tax nexus standard violated the 1992 U.S. Supreme Court decision Quill v. North Dakota.
The nexus standard had required remote sellers with no physical presence in the state to collect and remit South Dakota sales taxes when the seller met certain sales thresholds of $100,000 or 200 more separate transactions. The state is expected to appeal the decision to the U.S. Supreme Court.
Similar remote seller economic sales and use tax nexus provisions have been enacted or promulgated in other states, including Alabama, Indiana, Maine, Massachusetts (Oct. 1, 2017), North Dakota (delayed), Ohio (Jan. 1, 2018), Tennessee (delayed), Vermont (delayed) and Wyoming (July 1, 2017 ? challenged). As noted, many of those provisions have been challenged or are not yet effective.
The question is will this be the time the U.S. Supremes take the case or will the U.S. Congress continue to be expected to act?
The full South Dakota Supreme Court opinion is available here.
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