2018-06-21 National Governors Association

NGA Statement on Supreme Court Ruling in South Dakota v. Wayfair

The National Governors Association released today the following statement in reaction to the U.S. Supreme Court’s opinion in South Dakota v. Wayfair (No. 17-494)

The National Governors Association praises today’s opinion by the U.S. Supreme Court in South Dakota v. Wayfair.

The Court answered a decades-old question left unanswered by Congress: whether states and local governments can require all sellers, not just those that have a physical presence in a jurisdiction, to collect and remit sales taxes. “The physical presence rule has long been criticized as giving out-of-state sellers an advantage…These critiques underscore that the rule, both as first formulated and as applied today, is an incorrect interpretation of the Commerce Clause,” wrote the Court.

“States have long fought the battle for Main Street businesses and now with today’s ruling, all businesses will compete on a level playing field,” said South Dakota Governor Dennis Daugaard, chair of the NGA Legal Affairs Committee.

By ensuring that both Main Street and e-Street retailers can be required to collect and remit sales taxes on their transactions, today’s opinion helps ensure that government is not picking winners and losers among the parties in interstate commerce.  “It means that the corner store is now on the same footing with the online retailer,” said Connecticut Governor Dannel Malloy, a member of the NGA Legal Affairs Committee.

Today’s decision helps set the stage for all businesses to compete and succeed.

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