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Tax Alert: South Dakota v. Wayfair

2 July 2018

On June 21, 2018, the United States Supreme Court handed down its long-awaited decision in South Dakota v. Wayfair, sweeping aside more than fifty years of Supreme Court jurisprudence in a 5-4 decision that will ultimately subject internet retailers to sales taxes in states where they have no physical presence.

The Decision

The Court’s decision in Wayfair overturns two previous Supreme Court precedents based on the Dormant Commerce Clause, National Bellas Hess v. Illinois (1967) and Quill Corporation v. North Dakota (1992), which effectively prevented a state from charging and collecting sales taxes from retail purchases made online and shipped to customers in the state unless the seller had a physical presence in that state.View the rest here.