U.S. Supreme Court to Reconsider Economic Nexus Issues
Posted on 01.18.18
As you may have heard, there has been a push by the states to require the collection of sales tax by out-of-state retailers essentially on internet sales. However, the states have been limited by a US Supreme Court ruling back in 1992, Quill, where the Court ruled that one must have a physical presence in a state in order to be required to collect sales tax. Thus, a lot of Internet sales have escaped taxation and there are estimates that the states have missed out on $13 billion in tax receipts.
The US Supreme Court agreed last Friday to revisit the issue this year, with oral arguments likely in April and a decision expected by the end of June. It appears that a few members of the Court already have opinions that Quill should be overturned.
It’s important to keep in mind that any proposed changes to economic nexus have not been finalized. We will continue to monitor for any potential changes and keep you informed.