PIERRE, S.D. – Attorney General Marty Jackley is pleased to announce that 36 Attorneys General are supporting South Dakota’s position that sales tax obligations should be applied fairly to both internet and main street businesses. Colorado has filed a “friend of the court” brief in support of South Dakota’s petition to the United States Supreme Court asking that Quill Corp. v. North Dakota, 504 U.S. 298 (1992) be overruled.
“South Dakota is leading the national fight to bring tax fairness for our local retailers and to help support main street businesses. I want to thank Colorado Attorney General Cynthia Coffman and my other Attorney General colleagues for their overwhelming support in seeking tax fairness for local retailers. Nobody enjoys paying taxes, but if necessary a tax should be fair and equal,” said Jackley.
In Quill, the U.S. Supreme Court required that a retailer have a “physical presence” within a state before a seller can be obligated to collect and remit that state’s sales taxes on purchases delivered into the state.
South Dakota passed a law in 2016 that would require out-of-state retailers to collect and remit sales tax similar to in-state retailers. The law applies to out-of-state retailers if they have more than $100,000 in sales or complete more than 200 transactions per year within South Dakota.
Given the controlling precedent of Quill, on October 2, 2017, the Attorney General’s Office filed a petition for certiorari asking the U.S. Supreme Court to review the South Dakota Supreme Court decision in State of South Dakota v. Wayfair, Overstock and Newegg.