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.