PODCAST: Wayfair Tax ‘Case of Millennium’ to Have Far-Flung Impacts

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

On April 17, the U.S. Supreme Court heard oral arguments in the biggest state and local tax case in years. South Dakota v. Wayfair is a direct challenge to the high court’s 1992 ruling in Quill Corp. v. North Dakota, which prohibits states from imposing sales tax collection obligation on vendors lacking an in-state physical presence.

The Justices explored a handful of topics during arguments, notably the role of Congress to regulate inter-state commerce, the issue of compliance costs faced by small and medium-sized businesses, and how to define a new rule if they were to “kill Quill.” A decision is expected by June.

Harley Duncan, leader of the state and local tax group of the Washington National Tax practice at KPMG LLP sat down with Talking Tax host Ryan Prete to analyze the oral arguments and discuss what sellers and states could face in the coming months while awaiting the decision.

Listen here: http://src.bna.com/x8z

South Dakota v. Wayfair, Inc., U.S., No. 17-494, oral argument 4/17/18

To contact the reporter on this story: Ryan Prete in Washington at rprete@bloombergtax.com

To contact the editor responsible for this story: Ryan C. Tuck at rtuck@bloombergtax.com

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