The Supreme Court decided it will reconsider its stance from 26 years ago on states collecting sales tax from out-of-state retailers when it hears South Dakota v. Wayfair. The Houston Chronicle sought comment from Matt Boch in the article, “Supreme Court will force Congress to fix Internet sales tax.”
Matt explained why the Supreme Court waited so long to take a new sales tax “nexus” case: "They wanted Congress to make some policy choices because there are a lot of trade-offs…. If you are a small to mid-size seller, you have some real compliance concerns about complying with local and state sales and use taxes across 10,000 or more taxing jurisdictions."
He also speculated on the implications if South Dakota’s law is upheld and prior Supreme Court precedent overturned: "If South Dakota gets upheld, every state in the country ... is going to pass a similar law to see what they can get. The revenue pressure is so acute," Boch said. "Sales and use taxes get rapidly complicated as you move away from discrete, basic sales of tangible personal property."