South Dakota v. Wayfair, Supreme Court Rules States Can Require Online Sales Tax

AAFCPAs would like to make clients aware that the US Supreme Court on Thursday, June 21, 2018, in the case of “South Dakota v. Wayfair,” overturned its 1992 “Quill” decision, which had barred states from requiring internet and mail order vendors with no physical presence in a state from collecting sales tax on transactions involving in-state customers. Part of the Court’s reasoning involved examples of a seller’s website being accessible on a customer’s computer, or an app being downloaded onto a phone or tablet.
Larger online retailers, such as Amazon and Walmart, already have a presence in most (if not all) states, and are already collecting sales tax on e-commerce transactions. The specifics of how this will affect smaller retailers from a compliance standpoint are to be determined.  AAFCPAs anticipates that the process of collecting and remitting sales tax by companies who do not maintain a physical presence in multiple states will become far more complex. Third party software vendors will likely see an increase in business. Congressional action that delays or manages the implementation of the Court’s decision is also a possibility.
The tax practice of AAFCPAs will continue to monitor the results of the ruling, and keep you informed as significant changes occur. If you have any questions on how this decision may impact you, please contact: your AAFCPAs Partner; or Richard Weiner, CPA, MST at 774.512.4078,; or Julie Chevalier, CPA at 774.512.4037,

About the Authors

Rich has over 30 years of broad tax experience with a specialty in tax planning and consulting for private and publicly-held businesses. Rich has specific expertise in the Software, Bio-Technology, Medical Device, Life Science, Manufacturing, Retail, Professional Service and Publishing industries, as well as U.S. aspects of international taxation. He works extensively with European companies expanding into the U.S. market. Additional areas of focus include companies and stockholders in transition, including structuring of and planning for Mergers & Acquisitions, planning for changes in ownership and management, and adoption of tax methodologies with a view toward the long term. He is well known in his field and is a frequent speaker on a variety of tax related topics.
Julie Chevalier, CPA
Julie is a hands-on leader of AAFCPAs’ tax team. She is responsible for ensuring that clients minimize tax obligations with cutting-edge solutions based upon proven effective and reliable tax expertise.  Her skills are concentrated on state and local taxation (SALT), including: income, franchise, property, payroll and sales and use taxes. She delivers compliance, tax consulting and tax planning solutions for individuals and privately-held businesses in a variety of industries, including: retail, professional services, technology, software, publishing, manufacturing and nonprofit entities. She is highly-sought after for her knowledge on issues related to: physical presence versus economic nexus; state apportionment; tax exposure in relation to FIN 48 financial reporting; and the tax implications of multi-state transactions, such as: mergers, acquisitions, expansions and relocations.