South Dakota’s Attorney General has filed a state petition asking the U.S. Supreme Court to reconsider a 25-year-old ruling that prohibits states from collecting sales taxes from businesses that do not have a physical presence (warehouse, office, retail outlets, etc...) in the state.
In 1992, the Supreme Court ruled in Quill Corp. vs. North Dakota that it would be too burdensome for retailers without a physical in-state presence to adhere to the 6000+ sales and use tax jurisdictions in the U.S. It was believed that these burdens would restrict interstate commerce.
However, the retail landscape has changed significantly since the 90s. Internet retail behemoths such as Amazon.com and eBay are reporting billions of dollars in sales, and South Dakota believes that it’s time for the laws to reflect those changes.
“Federal law currently shields out-of-state businesses from remitting the same taxes as South Dakota businesses. Today the State asks the U.S. Supreme Court [to level] the playing field,” said South Dakota Attorney General Marty Jackley in a press release.
Many other states are expected to join what has been called the “Kill Quill” movement.
