On Monday, the U.S. Supreme Court (SCOTUS) heard oral arguments in the case of South Dakota v. Wayfair Inc., a case we have previously written about. In short, this case reviews a state’s ability to require online retailers to collect sales tax. Under the current law, states can only require internet retailers to collect sales tax if that retailer has a physical presence within the state.
States argue that a physical presence requirement which worked well before the internet is now untenable and is causing hundreds of millions of dollars in sales tax revenue to go uncollected. They also argue that a different scheme to require collections of sales tax would put brick-and-mortar stores, who must collect the tax, on a level playing field with their online competitors. For New Jersey, an increase in sales tax revenue would mean more funding for property tax relief.
The Court does not provide a date for when they will issue their decisions but on average a written opinion is issued three months after oral arguments. However, because of the importance of this case it is expected that it will take a bit longer for the Court to issue a ruling. We will be sure to update our members on any updates.
Contact: Frank Marshall, Esq., League Staff Attorney, FMarshall@njslom.org or 609-695-3481, x.137