Where is the windfall promised by the South Dakota v. Wayfair, Inc ruling? This is the first blog post in a short series about economic nexus, local sales and use taxes, and your revenue! Well, first let’s all get on the same page. What is the South Dakota v. Wayfair, Inc (Wayfair) ruling, and why do we care about it? The Wayfair case was ruled on by the Supreme Court in the summer of 2018. It found that South Dakota’s laws regarding economic nexus were Constitutional. Still sound like gobbled gook to you? Let’s back a bit further then. In 1992 the Supreme Court ruled in favor of Quill in the Quill Corp v. North Dakota case. This case, much like Wayfair, was about whether the state could require remote vendors to collect use taxes (think sales taxes for purchases made out of state). Back in 1992 this was largely purchases made by catalog or over the phone for one of those snazzy gadgets being sold on that infomercial. By finding in favor of Quill, the Supreme Court acknowledged (and highlighted) the burdens that would be placed on remote vendors that are not present for brick and mortar retailers.
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