South Dakota asks the US Supreme Court to hear its case for collecting online sales tax

The state of South Dakota wants the U.S. Supreme Court to get involved in the state’s battle to require larger e-retailers to collect sales tax from state residents and remit them to South Dakota. If the high court accepts the case, its decision could determine whether online retailers can be required to collect sales tax nationwide.

The state on Monday petitioned the U.S. Supreme Court to review a decision by the South Dakota Supreme Court in the state’s case against online retailers Wayfair Inc., No. 16 in the Internet Retailer 2017 Top 500; Newegg Inc. (No. 21); and Overstock.com Inc. (No. 30). The South Dakota Supreme Court decision lets stand a lower court ruling preventing the state from enforcing a law that openly challenges the prevailing Supreme Court ruling that absolves retailers from having to collect sales tax in states where they have no physical presence.

The South Dakota law would require e-retailers that do more than 200 transactions with South Dakota residents or do more than $100,000 in sales but lack a physical presence in the state to collect sales tax on those sales and then pay the state.

South Dakota officials want the case against Wayfair, Overstock and Newegg to advance to the U.S. Supreme Court in order for the Court to reconsider its 1992 decision in Quill Corp. v. North Dakota. In that decision, the U.S. Supreme Court ruled that catalog retailer Quill did not have to collect a sales tax in North Dakota because it had no physical presence there.

Marty Jackley, the attorney general for South Dakota, says he wants the U.S Supreme Court to hear the case because he views the state court’s decision as unfair to businesses that have bricks-and-mortar locations in South Dakota.
https://www.digitalcommerce360.com/2017/10/03/south-dakota-takes-fight-online-sales-tax-u-s-supreme-court/