As Dealerscope reported earlier this year, the Supreme Court announced it would review a 25-year—old case that has the potential to dramatically alter ecommerce here in the United States. South Dakota v. Wayfair, which will go before the Supreme Court justices on Tuesday, calls into question a 1992 court ruling that outlines how states and other localities can tax goods sold outside of their borders.
Initially intended to regulate catalog-based sellers, the ruling has been challenged again and again by states seeking to claim their fair shake of online sales.
The precedent set by the 1992 case—Quill Corp. v. North Dakota—established that states could only collect sales tax from a retailer with an established physical presence within their boundaries. At the time, the court cited state sales tax laws that were too complicated for retailers to know how much to collect unless they had a physical presence in that specific state.