Wayfair v. South Dakota

Wayfair v. South Dakota is a 2018 Supreme Court case that changed how online sales tax is applied. Prior to this ruling, states could only collect sales tax from businesses with a physical presence there. South Dakota challenged this by imposing sales tax on online sellers regardless of their location. The Supreme Court upheld South Dakota's law, allowing states to require remote sellers to collect sales tax, thus enabling them to compete fairly with local businesses. This decision aimed to help states recover lost tax revenue from online shopping growth.