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Supreme Court Ruling In South Dakota V. Wayfair Inc. Updates Physical Nexus Standards And Sales Tax Collection Policies, Keith Lowe, Cassandra W. Chandler, Julie Staples

Southern University College of Business E-Journal

In the case of South Dakota v. Wayfair Inc., the U.S. Supreme Court overturned controlling cases addressing standards and guidelines for sales tax collections. These precedent cases, in existence for decades, formed the basis for competitive advantages that the E-commerce industry held over traditional commerce. These two cases held that an out-of-state seller’s liability to collect and remit sales tax to the consumer’s respective state depended on whether the seller had a physical presence in that state. This research paper examines several issues leading to this recent Supreme Court decision. Additionally, coordinated state efforts in 2000 led to what would …