State Tax Today | Quill or Be Quilled: A Review of 2016 and Predictions for 2017

Kendall Houghton discusses the potential implications on other income taxes of the U.S. Supreme Court’s decision in South Dakota v. Wayfair Inc.

The U.S. Supreme Court issued its decision in South Dakota v. Wayfair Inc. on Thursday. The South Dakota law under review was the result of an intentional effort by South Dakota to pass a law with an “economic nexus” threshold for use tax collection purposes that would conflict with the “physical presence” standard imposed by the Supreme Court’s 1992 decision in Quill Corp. v. North Dakota.

The U.S. Supreme Court’s Wayfair decision overturns decades-old precedent and fundamentally changes the use tax collection landscape while leaving a number of questions unanswered. Our State & Local Tax Group explains how this decision has huge implications for online retailers, states’ coffers, and consumers’ wallets.

Clark Calhoun comments on the apparent reservations among several Supreme Court justices about implementing South Dakota’s new physical presence standard for sales tax collection.

The U.S. Supreme Court heard oral arguments in the latest challenge to Quill’s physical-presence standard for collecting state use taxes. Our State & Local Tax Group provides a first-hand account of the lively debate and analyzes the Justices’ willingness to overturn the 25-year-old standard.