Lance S. Jacobs, of counsel with Pepper Hamilton's Tax Practice Group, is quoted in the June 21, 2018 Law360 article, "'Attorneys React to Ruling in South Dakota v. Wayfair.'
Attorneys tell Law360 why the decision is significant.
Lance Jacobs, Pepper Hamilton LLP
“Obviously, the lack of physical presence is no longer a barrier preventing states from requiring vendors to collect and remit sales tax. The decision does note that other aspects of commerce clause jurisprudence could bar states from requiring remote retailers from collecting — if, for example, the administrative costs were too high. Additionally, the court notes with approval that the South Dakota legislation will not apply retroactively and this may deter other states from doing so. Finally, the decision emphasizes that Congress could enact legislation — which it has considered in the past — to regulate sales tax collection in this context.”