ILMA Compoundings June 2018 - 34
COUNSEL COMPOUND
Is a Big Change Coming
to Internet Sales?
By Jeff Leiter
T
he U.S. Supreme Court will
issue its decision this month in
South Dakota v. Wayfair, and
depending on the outcome, the decision could alter the manner in which
some ILMA members solicit orders and
sell their products over the internet, by
catalog or over the phone. As if you do
not already have enough on your plate
at work to worry about, you should pay
attention to Wayfair.
In Wayfair, South Dakota is
challenging a 1992 decision by the
high Court in Quill Corp. v. North
Dakota, which reaffirmed an earlier
ruling that a state could require only
a business with a physical presence
in that state to collect and remit sales
tax. Businesses without that physical
presence could not be required to
collect or remit these taxes. The Court
said it was up to Congress to change
the "physical presence" test.
Quill's 1992 physical presence test did
not foresee e-commerce and the explosion in online sales. Because of the states'
lack of authority to collect sales taxes
on e-commerce sales, estimates describe
a loss of $13.4 billion in tax revenues in
2017. States with no income tax, such as
South Dakota, rely heavily on sales taxes
and have been hard hit by the physical
presence test. At the same time, online
sellers resist sales tax collections because
the resulting lower total cost makes their
products more marketable against brickand-mortar sellers.
South Dakota decided to challenge
Quill's precedent by enacting an
economic nexus law that requires
34
JUNE 2018
| COMPOUNDINGS | ILMA.ORG
out-of-state sellers making either at
least 200 sales, or more than $100,000
from the sales in the state, to collect
and remit South Dakota sales and use
tax. Wayfair, a Boston-based online
retailer of furniture, home furnishings,
décor and goods, challenged the South
Dakota statute. The implications and
stakes from the Court's decision are so
high that dozens of groups and other
parties submitted "friend-of-the-court"
briefs to the high Court.
The Supreme Court heard oral
arguments in Wayfair on April 17
on the question of whether it should
abandon the Quill precedent or continue to leave the issue up to Congress.
During the oral arguments, the justices
recognized that their decision will
have a significant effect on interstate
commerce. Through their questions,
some of the justices hinted that Quill
was wrongly decided, while others cited
the cost of nationwide compliance with
a law change and its possible effect
on small businesses. Questions were
also asked about prospective versus
retroactive application of their decision
http://www.ILMA.ORG
ILMA Compoundings June 2018
Table of Contents for the Digital Edition of ILMA Compoundings June 2018
ILMA Compoundings June 2018 - Cover1
ILMA Compoundings June 2018 - Cover2
ILMA Compoundings June 2018 - 1
ILMA Compoundings June 2018 - 2
ILMA Compoundings June 2018 - 3
ILMA Compoundings June 2018 - 4
ILMA Compoundings June 2018 - 5
ILMA Compoundings June 2018 - 6
ILMA Compoundings June 2018 - 7
ILMA Compoundings June 2018 - 8
ILMA Compoundings June 2018 - 9
ILMA Compoundings June 2018 - 10
ILMA Compoundings June 2018 - 11
ILMA Compoundings June 2018 - 12
ILMA Compoundings June 2018 - 13
ILMA Compoundings June 2018 - 14
ILMA Compoundings June 2018 - 15
ILMA Compoundings June 2018 - 16
ILMA Compoundings June 2018 - 17
ILMA Compoundings June 2018 - 18
ILMA Compoundings June 2018 - 19
ILMA Compoundings June 2018 - 20
ILMA Compoundings June 2018 - 21
ILMA Compoundings June 2018 - 22
ILMA Compoundings June 2018 - 23
ILMA Compoundings June 2018 - 24
ILMA Compoundings June 2018 - 25
ILMA Compoundings June 2018 - 26
ILMA Compoundings June 2018 - 27
ILMA Compoundings June 2018 - 28
ILMA Compoundings June 2018 - 29
ILMA Compoundings June 2018 - 30
ILMA Compoundings June 2018 - 31
ILMA Compoundings June 2018 - 32
ILMA Compoundings June 2018 - 33
ILMA Compoundings June 2018 - 34
ILMA Compoundings June 2018 - 35
ILMA Compoundings June 2018 - 36
ILMA Compoundings June 2018 - 37
ILMA Compoundings June 2018 - 38
ILMA Compoundings June 2018 - 39
ILMA Compoundings June 2018 - 40
ILMA Compoundings June 2018 - 41
ILMA Compoundings June 2018 - 42
ILMA Compoundings June 2018 - 43
ILMA Compoundings June 2018 - 44
ILMA Compoundings June 2018 - Cover3
ILMA Compoundings June 2018 - Cover4
https://www.nxtbook.com/ygsreprints/ILMA/G127535ILMA_vol71_no7
https://www.nxtbook.com/ygsreprints/ILMA/G126213ILMA_vol71_no6
https://www.nxtbook.com/ygsreprints/ILMA/G125546_ILMA_vol71_no5
https://www.nxtbook.com/ygsreprints/ILMA/G124996_ILMA_vol71_no4
https://www.nxtbook.com/ygsreprints/ILMA/G123886_ILMA_vol71_no3
https://www.nxtbook.com/ygsreprints/ILMA/G123315_ILMA_vol71_no2
https://www.nxtbook.com/ygsreprints/ILMA/G122980_ILMA_vol71_no1
https://www.nxtbook.com/ygsreprints/ILMA/G121540_ILMA_vol70_no11
https://www.nxtbook.com/ygsreprints/ILMA/G120882_ILMA_vol70_no10
https://www.nxtbook.com/ygsreprints/ILMA/G120035_ILMA_vol70_no9
https://www.nxtbook.com/ygsreprints/ILMA/G121XXX_ILMA_vol70_no8
https://www.nxtbook.com/ygsreprints/ILMA/G120XXX_ILMA_vol70_no7
https://www.nxtbook.com/ygsreprints/ILMA/G119XXX_ILMA_vol70_no6
https://www.nxtbook.com/ygsreprints/ILMA/G118112_ILMA_vol70_no5
https://www.nxtbook.com/ygsreprints/ILMA/G117382_ILMA_vol70_no4
https://www.nxtbook.com/ygsreprints/ILMA/G116888_ILMA_vol70_no3
https://www.nxtbook.com/ygsreprints/ILMA/G115555_ILMA_vol70_no2
https://www.nxtbook.com/ygsreprints/ILMA/G114774_ILMA_vol70_no1
https://www.nxtbook.com/ygsreprints/ILMA/g110500_ILMA_vol69_no12
https://www.nxtbook.com/ygsreprints/ILMA/g110500_ILMA_vol69_no11
https://www.nxtbook.com/ygsreprints/ILMA/g110500_ILMA_vol69_no10
https://www.nxtbook.com/ygsreprints/ILMA/g109884_ILMA_vol69_no9
https://www.nxtbook.com/ygsreprints/ILMA/g109284_ILMA_vol69_no8
https://www.nxtbook.com/ygsreprints/ILMA/g108494_ILMA_vol69_no7
https://www.nxtbook.com/ygsreprints/ILMA/g107507_ILMA_vol69_no6
https://www.nxtbook.com/ygsreprints/ILMA/g106483_ILMA_vol69_no5
https://www.nxtbook.com/ygsreprints/ILMA/g105803_ILMA_vol69_no4
https://www.nxtbook.com/ygsreprints/ILMA/g104743_ILMA_vol69_no3
https://www.nxtbook.com/ygsreprints/ILMA/g103647_ILMA_vol69_no2
https://www.nxtbook.com/ygsreprints/ILMA/g102869_ILMA_vol69_no1
https://www.nxtbook.com/ygsreprints/ILMA/g101930_ILMA_vol68_no12
https://www.nxtbook.com/ygsreprints/ILMA/g100836_ILMA_vol68_no11
https://www.nxtbook.com/ygsreprints/ILMA/g99200_ILMA_vol68_no10
https://www.nxtbook.com/ygsreprints/ILMA/g98468_ILMA_vol68_no9
https://www.nxtbook.com/ygsreprints/ILMA/g97711_ILMA_vol68_no8
https://www.nxtbook.com/ygsreprints/ILMA/G96767ILMA_vol68_no7
https://www.nxtbook.com/ygsreprints/ILMA/G95397ILMA_vol65_no6
https://www.nxtbook.com/ygsreprints/ILMA/G94323ILMA_vol68_no5
https://www.nxtbook.com/ygsreprints/ILMA/G93127_ILMA_vol69_no4
https://www.nxtbook.com/ygsreprints/ILMA/G91785_ILMA_vol68_no3
https://www.nxtbook.com/ygsreprints/ILMA/G90956_ILMA_vol68_no2
https://www.nxtbook.com/ygsreprints/ILMA/G89146_ILMA_vol68_no1
https://www.nxtbook.com/ygsreprints/ILMA/G87981_ILMA_vol67_no12
https://www.nxtbook.com/ygsreprints/ILMA/G85409_ILMA_vol67_no11
https://www.nxtbook.com/ygsreprints/ILMA/G83595_ILMA_vol67_no10
https://www.nxtbook.com/ygsreprints/ILMA/G81672_ILMA_vol67_no9
https://www.nxtbook.com/ygsreprints/ILMA/G80238_ILMA_vol7_no8
https://www.nxtbook.com/ygsreprints/ILMA/G79388_ILMA_vol7_no7
https://www.nxtbook.com/ygsreprints/ILMA/G78361_ILMA_vol7_no6
https://www.nxtbook.com/ygsreprints/ILMA/G77448_ILMA_vol7_no5
https://www.nxtbook.com/ygsreprints/ILMA/G75899_ILMA_vol67_no4
https://www.nxtbook.com/ygsreprints/ILMA/G75036_ILMA_vol67_no3
https://www.nxtbook.com/ygsreprints/ILMA/G72720_ILMA_vol67_no2
https://www.nxtbook.com/ygsreprints/ILMA/G72220_ILMA_vol67_no1
https://www.nxtbook.com/ygsreprints/ILMA/G70970_ILMA_vol66_no12
https://www.nxtbook.com/ygsreprints/ILMA/G69813_ILMA_vol66_no11
https://www.nxtbook.com/ygsreprints/ILMA/G67522_ILMA_vol66_no10
https://www.nxtbook.com/ygsreprints/ILMA/G66343_ILMA_vol66_no9
https://www.nxtbook.com/ygsreprints/ILMA/G64859_ILMA_vol66_no8
https://www.nxtbookmedia.com