ARLINGTON, VA – In a 5-4 decision in the case of South Dakota v. Wayfair, the Supreme Court today voted to overturn a 1992 ruling (Quill Corp v. North Dakota) that prevented states from collecting sales tax on remote transactions unless the taxed company has a physical presence in the state. Quill was handed down in the days when the internet was in its infancy and restricted the ability of states to create tax regimes that reflect the state of commerce in 2018, costing them billions in sales tax revenue annually.
Food Marketing Institute (FMI) Senior Director, Tax, Trade and Sustainability, Andrew Harig, offered the following statement on the Supreme Court’s vote to overturn the 1992 Quill decision in South Dakota v. Wayfair:
“Quill established two different sets of rules governing the collection of sales taxes that left traditional retailers badly disadvantaged against their online peers. Today’s ruling sets the stage for states to begin leveling the playing field for brick and mortar retailers by treating online transactions in the same way they treat in-person ones.”
“The Supreme Court’s decision is an important victory for FMI members and puts us on a path that will allow for the creation of a balanced, consumer-driven and competitive marketplace.”
“We look forward to working with the states and Congress as they seek to outline the terms under which states can collect these taxes.”