Southern University College of Business E-Journal


In the case of South Dakota v. Wayfair Inc., the U.S. Supreme Court overturned controlling cases addressing standards and guidelines for sales tax collections. These precedent cases, in existence for decades, formed the basis for competitive advantages that the E-commerce industry held over traditional commerce. These two cases held that an out-of-state seller’s liability to collect and remit sales tax to the consumer’s respective state depended on whether the seller had a physical presence in that state. This research paper examines several issues leading to this recent Supreme Court decision. Additionally, coordinated state efforts in 2000 led to what would become the Streamlined Sales and Use Tax Agreement (SSUTA). The SSUTA offered voluntary guidelines to assist states in modernizing sales tax collection policies. Future implications of the South Dakota v. Wayfair Inc., decision upon commerce policy and sales tax collections are explored.

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E-Commerce Commons