On January 12, the United States Supreme Court agreed to hear a case through which they will re-consider the primacy of “physical presence” in determining a sellers’ obligation to collect and remit sales tax across the country. The case (South Dakota v. Wayfair, Inc. Et al.) comes to the Court based on a South Dakota statute enacted in 2016 which required remote sellers to collect tax on sales to South Dakota customers if they had more than $100,000 in annual sales into South Dakota or engaged in 200 or more separate transactions.
With oral arguments potentially happening in April and a final decision in June, businesses need to immediately begin considering the steps they need to take to support what could be a greatly expanded sales tax compliance obligation in the very near future.