South Dakota v. Wayfair Overturns the Decades-Old Physical Presence Standard

Summary

This practice note discusses the U.S. Supreme Court's landmark decision in South Dakota v. Wayfair, Inc., 138 S. Ct. 2080 (2018). In addition to evaluating the ruling in Wayfair and the precedents that went before it, this practice note offers a primer on the fundamental concepts of state sales and use tax principles underpinning Wayfair, including substantial nexus, economic nexus, physical and economic presence, the Commerce Clause, the dormant Commerce Clause, and the Due Process Clause.