The U.S. Supreme Court today issued its decision in a case concerning state and local taxation and the economic nexus standard for remote sellers.
Specifically, South Dakota asked the Court to revisit and abrogate the sales and use tax physical presence nexus requirement that was upheld in Quill v. North Dakota. The Court today overturned Quill, finding that the physical presence test was “unsound and incorrect.”
The case is: South Dakota v. Wayfair, Inc., No. 17-494 (S. Ct. June 21, 2018). Read the Supreme Court’s decision [PDF 194 KB] that includes a dissenting opinion.
The purpose of this report is to provide text of the Court’s decision. KPMG will provide a follow-up discussion containing initial impressions about the decision.
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