On June 21, the Supreme Court issued a decision in South Dakota v. Wayfair, et al., holding that states may require out-of-state retailers to collect and remit sales tax on sales to in-state customers without requiring physical presence in the taxing state, formally abandoning the physical presence requirement from Bellas Hess and Quill. The most likely result of Wayfair is that states will change their sales tax statutes to follow South Dakota’s statute, giving them access to additional sales tax revenue. Unless Congress acts, many out-of-state retailers will be required to collect and remit sales tax, as well as file quarterly and annual sales tax returns, in states in which their only relationship is the shipping address of their customers.
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