Wayfair Inc. v. South Dakota

Wayfair Inc. v. South Dakota was a 2018 Supreme Court case that addressed whether states can require online retailers without a physical presence to collect sales tax. The Court ruled that South Dakota's law was valid, establishing that states can impose sales tax collection responsibilities on businesses engaged in significant economic activity within the state, even if they lack a traditional physical presence. This decision replaced the previous "physical presence" rule from a 1992 case, allowing states to more easily tax online sales and affecting how internet retailers handle sales tax collection nationwide.