U.S. Supreme Court Agrees to Review Quill’s Physical Presence Requirement

The U.S. Supreme Court has agreed to review the sales tax physical presence requirement of Quill Corp. v. North Dakota. Specifically, the U.S. Supreme Court will review a decision of the South Dakota Supreme Court that struck down a law that requires out-of-state retailers to collect and remit sales tax on Internet purchases. The law applied to out-of-state retailers that had an annual gross revenue of more than $100,000 from sales in South Dakota, or completed more than 200 sales annually in South Dakota.

State Remote Seller Law Conflicts with Quill

The state law directly conflicted with the U.S. Supreme Court ruling in Quill Corp. v. North Dakota, that held that retailers are not required to collect sales tax in states where they do not have a physical presence. Therefore, the state court struck the law down.

South Dakota v. Wayfair, Inc., U.S. Supreme Court, Dkt. 17-494, petition for certiorari granted January 12, 2018

By Brian Nudelman, JD, CCHTaxGroup

AUTHOR

Lisa Lopata

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