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Supreme Court to Consider State Tax, Online Retail Fissure

Posted On: Jan 12, 2018   |   Posted By: WWD

The issue of state tax paid by internet-based retailers is set to get the U.S. Supreme Court treatment.
The court agreed Friday to take up an appeal of South Dakota's lawsuit against a trio of online companies, Wayfair, Overstock.com and Newegg, over their refusal to submit to a new state law forcing them to remit sales tax, even without any physical presence in the state. The decision was released without explanation, as is customary.
It seemed likely that the justices would agree to look at the case when it came their way in September, given the continued legal hubbub stemming from a 1992 Supreme Court ruling in Quill Corp. v. North Dakota, which found that a “physical presence” for a direct mail or online company was required in a given state before a company could be forced to remit sales tax.
South Dakota Supreme Court justice Glen Severson cited Quill when he ruled against his state's law requiring Internet retailers to pay state taxes, but state attorney general Marty Jackley said then that it merely...

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