On June 21, 2018, the Supreme Court issued an opinion reversing prior precedent allowing states to require online retailers to collect and remit sales tax to the state where goods and services are provided regardless of whether the retailer has a "physical presence" in that state. Justice Kennedy wrote the opinion of the Court, joined by Justices Thomas, Ginsburg, Alito, and Gorsuch.
In South Dakota v. Wayfair, the Court overturned a quarter-century precedent and declared the prior “physical presence” test archaic . Online sellers of goods and services may be required to collect sales and use tax in a number of new states as a result of the ruling.
In Wayfair, the Court considered South Dakota’s new sales tax statute which requires sellers to collect and remit sales tax in South Dakota if the seller (1) annually delivers more than $100,000 of goods or services into South Dakota or (2) engages in 200 or more that the law was not retroactive.
It is anticipated that states across he country will follow suit with South Dakota creating billions of dollars in state revenue