Supreme Court rules that States can tax Web based sales:
The case is South Dakota v. Wayfair, Inc., et al. In making its decision, the Court overturned prior precedent and the “physical presence” rule finding it “unsound and incorrect.” Second, the prior law enunciated in the Quill decision “creates rather than resolves market distortions.” Third, Quill “imposes the sort of arbitrary, formalistic distinction that the Court’s modern Commerce Clause precedents disavow in favor of “a sensitive, case-by-case analysis of purposes and effects,” West Lynn Creamery, Inc. v. Healy, 512 U. S. 186, 201. It treats economically identical actors differently for arbitrary reasons.”
It is instructive that the Court cited a California tax board estimate that some 96% of such taxes go uncollected. In this writer’s opinion, the new decision brings an element of honesty to internet sales transactions which has been missing. Our government, and courts, are at their best when law encourages and promotes truth and honesty of transactions in the marketplace.
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