In a landmark decision announced June 21, the United States Supreme Court took a major step toward sales tax fairness when it voted to overturn a 1992 judgement (Quill Corp v. North Dakota) that was creating an uneven playing field on sales taxation for traditional and online sellers by prohibiting states from collecting sales taxes from sellers that do not have a physical presence in-state, i.e. e-commerce businesses.
While change may not be immediate, Jewelers of America offers an overview of the case and what’s to come so jewelers can begin to plan for how the ruling may impact their businesses.
The Case: South Dakota v. Wayfair
At issue in the case, argued on April 17, was South Dakota’s sales tax fairness law, which had been ruled unconstitutional by the South Dakota Supreme Court in September 2017. It requires online merchants with...