U.S. Supreme Court,
Tax
Nov. 6, 2018
Justices brushed aside legitimate concerns in online sales tax case
The court acted appropriately in abandoning the physical presence test. But the burden of collecting sales taxes in different states and varied amounts by online sellers poses a complex and legitimate concern, which was brushed aside by the court. In addition, the concept of “economic presence” as a benchmark may prove as difficult to apply as “physical presence.”
John H. Minan
Emeritus Professor of Law
University of San Diego School of Law
Professor Minan is a former attorney with the Department of Justice in Washington, D.C. and the former chairman of the San Diego Regional Water Quality Board.
The U.S. Supreme Court recently decided South Dakota v. Wayfair (138 S. Ct. 2080 (2018)). The decision will have broad consequences for online retail transactions, state and local taxation, and general e-commerce. The case also provides useful insight into the court's contemporary view of balancing the doctrine of stare decisis ("to stand by things decided") wi...
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