On what was easily the most anticipated day in sales tax history, the Supreme Court did what many experts thought they would, ruling five to four in favor of South Dakota’s right to require businesses to collect sales tax on e-commerce sales, even if they don’t have people or property in the state.
In so doing, the Court ushered in a new era for sales tax, overruling Quill Corporation vs. North Dakota, a decades-old legal precedent. This ruling opens the door for governments to collect more than $8 billion dollars in tax from e-commerce sales that were previously off limits.
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We asked our resident sales tax guru and the head of our regulatory analysis team, Charles Maniace, for his initial reactions. To read Chuck’s full responses, head over to the Sovos blog.
Get all your questions answered in our live Q&A on June 27, featuring regulatory experts Chuck Maniace and Alex Koral.