South Dakota v. Wayfair, Inc.

South Dakota v. Wayfair, Inc. was a landmark Supreme Court case decided in 2018. It addressed whether states can require online retailers to collect sales tax even if the retailer does not have a physical presence in the state. South Dakota argued that allowing this would help level the playing field between online and local businesses. The Supreme Court ruled in favor of South Dakota, stating that states can impose sales tax obligations on out-of-state sellers, thereby changing how online sales tax is managed in the U.S. This decision enhanced the ability of states to generate revenue from online sales.