The Supreme Court has decided to review the case South Dakota v. Wayfair. The case involves a South Dakota law compelling out of state businesses to act as tax collectors on products sold into the state, subjecting out-of-state businesses to regulations, court proceedings, and tax liens.
The Supreme Court has affirmatively held that a state cannot force a non-resident business to act as a tax collector. The court will decide whether the last half century of precedent was correct, or whether the Internet is subject to a different commerce standard.
Katie McAuliffe said:
It is disappointing that the Court has chosen to review a case on what should be settled precedent. The fight is now just beginning, and we hope that by taking up the case, the Court will clarify any confusion and re-affirm over 20 years of precedent.
It is imperative that the court prevents out of state entities being taxed if they lack a physical presence in that forum.
Overturning this decision would have disastrous consequences for interstate commerce, and place an enormous burden on smaller retailers that would be subjected to over 10,000 tax codes.”
Americans for Tax reform has filed a brief opposing these taxes, and will continue to follow the case as it develops.