Oral arguments took place on April 18 before the United States Supreme Court in the case of South Dakota v. Wayfair. The case is a challenge to a South Dakota statute the requires the collection of South Dakota’s sales tax by any seller that sells more than $100,000 of product into South Dakota during a calendar year or who has 200 or more separate transactions within the state during that year.
For those who wish to listen to the hour long session, you can find the audio here.
This statute pushes for pure economic nexus—no other sort of presence inside South Dakota (even “cookie nexus” like that being pursued by states like Massachusetts) is required to trigger collection. Such a position is directly contrary to the physical presence requirement outlined by the U.S. Supreme Court in the case of Quill Corp. v. United States, 504 U.S. 298 (1992) and, based on this fact, the statute had been struck down by South Dakota courts, including the South Dakota Supreme Court.
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