Daily Tax Report: State provides authoritative coverage of state and local tax developments across the 50 U.S. states and the District of Columbia, tracking legislative and regulatory updates,...
By Ryan Prete
E-retailers have submitted their last filing to the U.S. Supreme Court urging the justices to maintain a 26-year-old precedent that bars states from imposing sales tax collection obligations on vendors lacking an in-state physical presence.
The brief on the merits is the latest filing in the saga of South Dakota v. Wayfair, a direct challenge to the 1992 ruling in Quill Corp v. North Dakota prohibiting the imposition of sales tax on digital interstate purchases. The case is set to for oral argument April 17.
Among a variety of arguments, the March 28 brief—filed by e-retailers Wayfair Inc., Newegg Inc., and Overstock.com Inc.—contends that retailers “have justifiably continued to rely on Quill” and “were entitled to take this court at its word.”
The brief argues that tax compliance software doesn’t ease the burden on retailers, that “changed circumstances do not warrant overturning Quill,” and that the amount of uncollected tax often reported is far lower than estimated and continually diminishing.
The brief also argues that “Congress remains the proper body to address whether, and in what manner, to alter the Quill rule,” and that “overruling Quill presents the risk of crippling liability for retailers in over 30 states.”
Friend-of-the-court briefs from outside parties in favor of the e-retailers are due to the court April 4.
Rep. Kristi Noem (R-S.D.) fell short in a last-minute attempt to add a digital tax provision to a government spending bill March 23.
Noem, the sponsor of the the Remote Transactions Parity Act of 2017 (H.R. 2193) (RTPA), which seeks to kill Quill, has been vocal in her quest to pass digital sales tax legislation before the high court can rule on South Dakota v. Wayfair in June.
The case is South Dakota v. Wayfair, Inc. , U.S., No. 17-494, brief on the merits filed 3/28/18 .
To contact the reporter on this story: Ryan Prete in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Ryan C. Tuck at email@example.com
Copyright © 2018 Tax Management Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)