On June 21, 2018, the United States Supreme Court decided in South Dakota v. Wayfair, Inc. that South Dakota is permitted to collect sales tax from online retailers who sell in the state and have no physical presence in South Dakota.
Application of state sales tax on online retailers has been a major point of contention for states who feel they are being short-changed on sales tax. This 5-4 Supreme Court decision is favorable to other states who have developed or anticipate developing laws taxing internet retailers without physical presence of those states. We anticipate that most or all states will begin to insist on the collection of sales tax for online purchases starting as soon as the states are able to mobilize. This decision is brand new so stay tuned for further details.