South Dakota online tax law headed to Supreme Court

The South Dakota Supreme Court has ruled that the state cannot force out-of-state retailers to collect sales tax, setting up a possible appeal to the US Supreme Court that will have national implications. The court issued its ruling just two weeks after hearing the case brought by Internet retailers Wayfair, Overstock and Newegg. Lawmakers in 2016 passed a bill requiring Internet companies with more than $100,000 in annual sales or 200 transactions to remit sales taxes to the state. The law directly conflicted with a 1992 US Supreme Court ruling, Quill v. North Dakota, that held retailers don't have to collect sales taxes in states where they don't have a physical presence.