The U.S. Supreme Court has agreed to hear the South Dakota v. Wayfair case, opening up the possibility that remote sellers, such as online retailers, will be required to collect sales and use taxes on the state level.
The announcement, which was made on Jan. 12, means the court will revisit its 1992 decision in Quill Corp. v. North Dakota. In Quill, the court ruled that a state only could require a remote retailer to collect use tax from in-state customers to the extent that the retailer had a physical presence in the state.
Since the Quill ruling, internet sales have increased dramatically. Nareit has long held that current law creates an uneven playing field between online sellers and brick-and-mortar retailers. In 2017, Nareit joined a coalition of industry groups in filing an amici curiae brief as interested parties asking the court to hear the Wayfair case.
(Contact: Dara Bernstein at dbernstein@nareit.com)