Reversing a 1992 precedent in Quill v. North Dakota, on June 21, 2018, the U.S. Supreme Court issued a decision in South Dakota v. Wayfair, Inc., holding that physical presence in a state is not necessary to require a remote seller to collect sales tax.  In many respects this decision sets the stage for states to now require the collection of sales tax on e-commerce transactions facilitated by out-of-state sellers, but by striking the physical presence requirement, there is an open question on what constitutes a sufficient nexus for a state to impose a sales tax collection requirement.

Reed Smith has issued a Client Alert analyzing the Wayfair decision, soon to be followed by a webinar diving deeper into open questions following the decision and its implications.