SCOTUS ruling: Wayfair vs. South Dakota
MULTISTATE: The court vacated and remanded the decision of the South Dakota Supreme Court. The decision overruled Quill Corp v. North Dakota’s physical presence rule.
The Justices Held: “Because the physical presence rule of Quill is unsound and incorrect, Quill Corp. v. North Dakota, 504 U. S. 298, and National Bellas 2 SOUTH DAKOTA v. WAYFAIR, INC. Syllabus Hess, Inc. v. Department of Revenue of Ill., 386 U. S. 753, are overruled. Furthermore, the justices noted that Quill creates rather than resolves market distortions. In effect, it is a judicially created tax shelter for businesses that limit their physical presence in a State but sell their goods and services to the State’s consumers, something that has become easier and more prevalent as technology has advanced. The rule also produces an incentive to avoid physical presence in multiple States, affecting development that might be efficient or desirable.”
The full opinion can be found here: SUPREME COURT RULING
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