Warwick Carter Advisors, LLC


Content by Warwick Carter

There's a Huge Tax Case Pending in the Supreme Court

A month from now, on April 17, 2018 (Tax Day) the Supreme Court will hear oral arguments in the case of South Dakota v. Wayfair, Inc.  At issue is whether Wayfair, Inc., and other internet retailers that have no physical presence in South Dakota, can be required, under state law, to collect South Dakota sales (or use) tax on purchases of products by residents of South Dakota.  The case forces the Supreme Court to review its 1992 decision in Quill Corp. v. North Dakota, in which the Court held that, under the “dormant” Commerce Clause of the Constitution, a state may not require out-of-state retailers to collect use taxes on items sold to residents of that state unless the seller has at least some physical presence in the state providing sufficient constitutional “nexus” for taxation. Will the radical improvements in technology over the last 25 years cause the Court to adopt a new rule?  Will a new standard have an effect on other types of state taxes?

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Warwick Carter