New Hampshire’s Internet Sales Tax Fight Continues

New Hampshire has submitted an amicus curiae or “friend-of-the-court,” brief to the U.S. Supreme Court in the Internet sales tax case of South Dakota v. Wayfair, Inc. In its brief, New Hampshire urges the Court not to overrule Quill Corp. v. North Dakota.  The state wants to avoid exposing New Hampshire citizens and businesses to out-of-state sales taxes.

Physical Presence Required for Sales Tax

For decades, the U.S. Supreme Court has restricted states’ authority to impose sales and use taxes on entities that operate outside of their borders. The business or person must have some “physical presence” in the taxing state. South Dakota has enacted a law that requires a seller that “does not have a physical presence in the state” to collect and remit sales taxes to it.

South Dakota v. Wayfair Challenges Quill

Earlier this year, the Court agreed to hear Wayfair. In that case, South Dakota seeks to uphold its law by challenging the so-called “physical presence” standard set forth in a 1967 U.S. Supreme Court decision, National Bella Hess v. Department of Revenue. National Bella Hess was upheld in a 1992 U.S. Supreme Court decision, Quill Corp. v. North Dakota. In its brief, New Hampshire argues that this precedent should not be overturned.

Subscribers can view the press release, and a copy of the brief, at https://www.governor.nh.gov/news-media/press-2018/20180405-sales-tax.htm.

Press Release, New Hampshire Governor Chris Sununu, April 5, 2018

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