Supreme Court’s Wayfair decision – What it means for Internet and mail-order sales
Abstract: In its much-anticipated decision in South Dakota v. Wayfair, the U.S. Supreme Court ruled, by a 5 to 4 margin, that a state may require out-of-state sellers to collect sales and use tax even if they lack a physical presence in the state. In reaching this result, the court overturned its landmark 1992 decision in Quill Corp. v. North Dakota. This article explains how the ruling affects businesses and their tax obligations. A sidebar explores whether other states will follow South Dakota’s lead in establishing similar sales thresholds to establish substantial nexus.