September 2018 Corporate Law Section Meeting & CLE

September  2018 Corporate Law Section Meeting & CLE
On June 21, 2018, the Supreme Court of the United States issued its decision in South Dakota v. Wayfair, et al. 585 US __ (1998), overturning nearly three decades of precedent regarding whether (under the (dormant) commerce clause) individual states could require non-resident retailers to charge (and remit) state sales taxes on sales to in-state residents and businesses.  Since 1993, the last time the nation’s highest court took up a state sales tax case, and well before the advent and explosion of e-commerce, states could only require non-resident retailers to collect sales tax if the retailer had a physical presence (in the state). In Wayfair, the Court overruled itself, holding that the “physical presence” standard it established in Quill Corp. v. North Dakota, 504 US 298 (1993) was “unsound and incorrect.” Through its decision the Court dismantled the sole nationwide standard for state sales taxation and left in its place uncertainty and the possibility that there will be as many state standards as there are states. The Wayfair decision has particular (and obvious) significance to online retailers who may sell into all fifty states, but have a physical presence in only one. But its effects potentially extend well beyond the sales tax realm. In answering one question -- whether “physical presence” was an appropriate standard, under the constitution -- the Court raised many more, that may not be answered for years to come, after significant litigation.
9/25/2018 11:45 AM - 1:00 PM
544 Main Street Baton Rouge, LA 70801 UNITED STATES

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