Attorney General Jackley Announces Landmark Supreme Court Decision in Favor of South Dakota and Mainstreet Business 

Pat Powers

Attorney General Jackley Announces Landmark Supreme Court Decision in Favor of South Dakota and Mainstreet Business 

PIERRE, S.D. –      Attorney General Marty Jackley announced today the United States Supreme Court has overruled the physical presence requirement in State of South Dakota v. Wayfair, Overstock and Newegg.

“Today’s landmark decision is a win for South Dakota and for Main Street businesses across America that will now have a level playing field and tax fairness,” said Jackley.

In his opening remarks to the United States Supreme Court Justices, Attorney General Jackley argued:

“There are two very significant consequences brought about by Quill: First, our states are losing massive sales tax revenues that we need for education, healthcare, and infrastructure. Second, our small businesses on Main Street are being harmed because of the unlevel playing field created by Quill, where out-of- state remote sellers are given a price advantage.”

Transcript of Oral Argument at 3, South Dakota v. Wayfair, Overstock and Newegg,

South Dakota passed a law in 2016 that would require out-of-state retailers to collect and remit sales tax similar to in-state retailers. The law applies to out-of-state retailers if they have more than $100,000 in sales or complete more than 200 transactions per year within South Dakota.

Given the controlling precedent of Quill, on October 2, 2017, the Attorney General’s Office filed a petition for certiorari asking the U.S. Supreme Court to review the South Dakota Supreme Court decision in State of South Dakota v. Wayfair, Overstock and Newegg.

In Quill, the U.S. Supreme Court required that a retailer have a “physical presence” within a state before a seller can be obligated to collect and remit that state’s sales taxes on purchases delivered into the state. None of this would be possible without the support of 41 Attorneys General, the President, the South Dakota Retailers Association, education leaders, and the business community.

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13 thoughts on “Attorney General Jackley Announces Landmark Supreme Court Decision in Favor of South Dakota and Mainstreet Business ”

  1. Marty is the real deal. He’s easily the best attorney in SD.

    He exudes excellence and class in every facet of life. Proud to know him and Rich Williams. They are outstanding people and legal minds.

  2. This just shows how huge of shoes the next AG has to fill and that not all AG’s are created equal.

  3. This is a very significant decision and Marty should be proud for having led the effort.

    1. Agree. Huge win. Maybe Trump should appoint Marty to federal circuit court of appeals.

    1. This is not true.

      SD law is clear: Any additional revenue we get in online sales tax collections MUST be offset by a reduction in the general sales tax rate.

      South Dakotans collectively pay not a single dime in higher taxes.

      Yes, those who have been shopping disproportionately online will pay more taxes. But, those supporting our Main Street businesses will pay less in taxes.

    2. If you have been following SD law, your taxes won’t change at all. We already have a use tax in place. Anytime you buy something out of state, or online, and didn’t pay sales tax, by law you are to remit a 4% use tax to the SD Dept. of Revenue.

      Have you been breaking the law??

    1. What are you talking about? There isn’t a dime of new revenue under SD Law. Only a re-allocation of who pays the taxes to online shoppers vs. those who shop downtown.

  7. This issue has never been about tax revenue. It is all about the SD Retailers trying to eliminate online competition. Most retail stores have not kept their inventories to meet demand or cannot compete with the online distributors. Paying sales tax will not deter online shopping. You order it today and it is delivered a few days later right to your door at a lot better price. I buy some things on line and pay tax on those items but I don’t think that when you have a rural address they should not charge municipal sales tax. Who is getting that money?

  8. Since it is going to help Main Street, then doesn’t that mean that Sears and Younkers will now stay open in Sioux Falls?…. And if not, why not? And don’t use the, well, Sears and Younkers are incompetent companies argument either, because if things are going to get better for brick and mortar because of this decision, then shouldn’t they stay open?

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