Gov. Daugaard’s Statement on South Dakota v. Wayfair, Inc. Decision
PIERRE, S.D. –Governor Dennis Daugaard offered the following statement in response to the United States Supreme Court’s decision to grant the state’s petition for a writ of certiorari in South Dakota v. Wayfair, Inc.:
“I am very pleased that the United States Supreme Court has agreed to hear this case. I hope this means the Court is open to revisiting the important issue of taxation of online sales.”
South Dakota v. Wayfair, Inc. is a pending United States Supreme Court case dealing with the nature of sales tax for purchases made over the Internet. The petitioner, the state of South Dakota, seeks the Court to abrogate the 1992 decision of Quill Corp. v. North Dakota, which argued that states may not collect sales tax from online retailers unless those retailers have a physical presence within their state. The Court has agreed to hear the case, with oral arguments scheduled for April 2018 and a decision expected by the end of the current term in June 2018.
Quill Corp. v. North Dakota 504 U.S. 298 (1992) was a Supreme Court case that determined that, due to the Dormant Commerce Clause, states could not collect sales taxes from purchases made from out-of-state vendors that did not have a physical presence within that state, barring legislation from the United States Congress that would allow them to do so. The decision effectively allowed Internet-driven e-Commerce to be run tax-free in the United States.
Some vendors however have voluntarily implemented sales tax programs, most notably Amazon.com starting in 2012.