U.S. Supreme Court will hear oral arguments on sales tax case

The U.S. Supreme Court has scheduled oral arguments for April 17 in South Dakota v. Wayfair Inc., moving the case closer to a decision on whether sales tax can be applied to online purchases.

Attorney General Marty Jackley will argue the case before the Supreme Court asking for a review on whether retailers can be required to collect sales tax in states where they do not have a physical presence. The case is being watched closely as it is expected to set national precedence.

South Dakota passed a law in 2016 requiring out-of-state sellers with more than $100,000 in annual sales or 200 transactions in the state to pay sales tax on the purchases. Four out-of-state retailers (Overstock.com, Newegg, Systemax and Wayfair) filed a motion for summary judgment arguing the law contradicted the physical presence requirement of the 26-year-old case Quill Corp. v. North Dakota. The Sixth Judicial Circuit of South Dakota and the South Dakota Supreme Court granted the retailers’ summary judgment and the State of South Dakota filed an appeal with the U.S. Supreme Court.

An argument preview found on the Supreme Court of the United States Blog provides additional information and details.