South Dakota v. Wayfair Heads to the U.S. Supreme Court

ALA Sends Second Amicus Brief in Support of Internet Sales Tax Fairness

The United States Supreme Court has scheduled oral arguments for South Dakota v. Wayfair, et al for April 17, 2018. The scheduling of oral arguments is welcome news for this and many other industries that have felt some sort of action is long overdue. For years ALA has made this issue a top priority during the annual fly-in to Washington, D.C. Congressional inaction and misinformation have plagued any chances of legislative success.

Tired of feeling the burden from lost revenue, 31 states have taken up and passed varying types of what are known as “click through nexus laws." These laws expand the scope of what is physical presence. South Dakota is one of those states.

The case of South Dakota v. Wayfair seeks to repeal the 1992 decision from Quill Corp. v. North Dakota, the case that prohibited states from collecting and remitting sales or use taxes on purchases made through online sellers, if the seller does not have a physical presence in the state.

Many outside observers did not expect the Supreme Court would consider the case so quickly. In fact, most assumed the Supreme Court would wait until the next term, which is scheduled to begin in October.

The Supreme Court’s move has caused a scrambling of efforts on Capitol Hill. Proponents of the Marketplace Fairness Act are actively lobbying Republican Leadership in the House of Representatives to include the bill as part of the omnibus spending package currently being considered. Those efforts are not expected to be successful.

Despite what might or might not happen in the halls of Congress, the Supreme Court appears poised to act. ALA has joined, once again, with other like-minded trade groups in sending an amicus brief that encourages an outcome that would be favorable to brick and mortar retailers. You can read the full text of the amicus brief, here.