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United States Supreme Court will hear South Dakota’s case addressing tax obligations of out-of-state retailers

To the delight of the state of South Dakota, the United States Supreme Court accepted its case, South Dakota v. Wayfair, on Jan. 12, 2017. The crux of this lawsuit is the legal permissibility of South Dakota’s spring 2016 law, SB 106, which has a purpose to “provide for the collection of sales taxes from certain remote sellers.” Ultimately, SB-106’s objective is to challenge the U.S. Supreme Court’s 1992 decision in Quill Corp. v. North DakotaQuillbanned states from requiring out-of-state retailers to collect sales taxes on products they ship into those jurisdictions, absent some minimal contact or physical presence.

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