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Weighing ‘Wayfair’: States Adjusting to Landmark Online Sales Tax Ruling

The U.S. Supreme Court issued a 5-4 ruling June 21 in Wayfair that threw out its divisive 1992 rule in Quill Corp. v. North Dakota. Quill, which states like the petitioning South Dakota for years have tried to “kill” through lawsuits and regulation, prohibited states from imposing sales tax collection obligations on vendors lacking an in-state physical presence.

The majority in Wayfair suggested strongly that South Dakota’s law would pass constitutional muster; the state’s model imposes the tax collection threshold at 200 separate transactions or $100,000 in in-state sales. But the court stopped short of formally declaring that South Dakota’s law, which dozens of states have mimicked already, was valid in the absence of Quill. The court just made clear that Quill was no longer part of any commerce clause test for when states may impose taxes.

Bloomberg Tax and the reporters behind Daily Tax Report: State have been following all of the fallout from Wayfair and stateside activity related to online sales taxation. Our correspondents report on developments from across the United States, and our in-house reporters deliver commentary and insights from the top thought leaders.

The following report highlights a few of the many Wayfair-related articles from Bloomberg Tax’s Daily Tax Report: State.

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