Skip to main content


Showing posts from September, 2018

As States Rush to Adopt Economic Nexus Post-Wayfair, Is Congressional Action Needed?

It’s hard to escape any discussion of Wayfair these days. This isn’t surprising, as we witnessed history on June 21, 2018, when the U.S. Supreme Court overturned the physical presence standard in South Dakota v. Wayfair . And in doing so, overturned 51 years of precedent that had restricted states from imposing their sales tax obligations on out-of-state ("remote") retailers who lacked a physical presence in their state. Yes, this was indeed a momentous development – one that has dramatically changed the sales tax landscape in a very short time. As important as the outcome of the decision, was the U.S. Supreme Court’s admission that Quill had been an “ incorrect interpretation of the Commerce Clause ” both as first formulated by the Bellas Hess and Quill courts as well as applied today and one which became “ further removed from economic reality ” each year. Calling Quill flawed on its own terms, the Wayfair Court held that: (1) the physical presence rule is not a