Knowledge Center

Wednesday, May 30, 2018

Jordan Goodman and Marilyn Wethekam discuss South Dakota v. Wayfair with Sales Tax Institute

Article by: Diane Yetter
Read full article published by Sales Tax Institute on 5/18/18.

The  South Dakota v. Wayfair  court case has been dominating news cycles lately and in a very short time, much has happened. On April 17th, the US Supreme Court heard oral arguments and this article gets different perspectives on the outcome from five experts on sales tax, two of which are HMB Partners.

"Jordan Goodman doesn't think there are five justices that will uphold  Quill. He doesn't think they will give a half answer. He thinks there are three options - overturn  Quill  and uphold the South Dakota threshold; Uphold  Quill  and keep substantial physical presence; or remand the case to build the facts. But he thinks down deep they want Congress to act."

"Marilyn's point was that one sale doesn't meet the threshold of substantial nexus. One is isolated and isn't an economic exploitation of the market...Another point Marilyn brought up is the vendor discount or seller compensation. This has been a sticking point in Streamlined as well as in the federal legislation. Some states offer a decent amount like Illinois at 1.75% of tax collected. Others like Florida offer a minimal amount - $30 per return. But a number of states don't offer anything at all. Sellers are doing a service for the states and should be compensated at a reasonable amount."

Click here to contact Jordan Goodman or Marilyn Wethekam with questions.

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