News

Sales Tax for Online Purchases: Supreme Court Divided

Online Sales Tax
What the Wayfair ruling means for online shoppers

That satisfying feeling of skipping sales tax on an online purchase may soon change. South Dakota v. Wayfair has the Supreme Court Justices divided over taxing internet sales.

You know that feeling of joy and satisfaction you experience when you save on sales tax on an online purchase? That may soon change.

1 The Case Before the Court

South Dakota v. Wayfair (No. 17-494), a case heard by the Supreme Court on Tuesday, has the Justices divided on the outcome. In this case, the court is considering whether to overrule Quill Corp v. North Dakota, a 1992 decision that effectively prohibited out-of-state retailers that do not have a physical presence in the state to collect tax on sales to state residents.

2 What Each Side Is Arguing

The South Dakota Attorney General Marty Jackley argued that states are losing massive sales tax revenue, estimated to be tens of billions of dollars, that are needed for important expenditures like infrastructure, education and healthcare. Furthermore, smaller, brick-and-mortar businesses are being harmed by out-of-state companies that have have an unfair price advantage. He argued that the Quill decision does not make sense in our digital era, where online shopping hit $360 billion in 2016. According to Jackley, the burdens previously identified during the Quill decision have since been solved by newly developed software.

The lawyer for the three internet retailers in this case, Wayfair, overstock.com and Newegg, argued that a ruling that overturns Quill would impose a massive burden on small online sellers. Navigating each individual state’s tax laws would be very challenging for online retailers, especially small businesses and sellers on sites like eBay and Etsy. The respondents in the case believe that this decision should be resolved in the legislature, not the Supreme Court.

3 How Online Sales Tax Works Today

Currently, big online companies like Amazon and Walmart already charge their customers sales tax for online purchases that are made directly from the company, rather than third-party sellers. But small sellers with no physical location don’t have to charge sales tax outside of their own state, which is why small online boutiques and independent sellers don’t charge their customers sales tax. Compelling the small sellers to charge sales tax in different states places a heavy burden on them to navigate unfamiliar tax codes, without the help of accountants.

On the other hand, brick-and-mortar stores are suffering a decline in in-store sales and many are frustrated by what’s known in the retail world as “showrooming.” This is when a customer visits a store to see a product in person, and subsequently purchases it for a lower price online. They want fair competition with all sellers, including online retailers.

4 What Happens Next

A decision by the Supreme Court is expected in late June so stay tuned. We’ll keep you up to date on any major changes for consumers.

Share:
Billshark · Bill Negotiation Experts
Helping consumers and small businesses stop overpaying on recurring bills.

Frequently Asked Questions

What is South Dakota v. Wayfair about?

South Dakota v. Wayfair (No. 17-494) is a case heard by the Supreme Court that asks whether to overrule Quill Corp v. North Dakota, a 1992 decision that effectively prohibited out-of-state retailers without a physical presence in a state from collecting tax on sales to that state's residents. The Justices were divided on the outcome.

Why does South Dakota want to overturn Quill?

South Dakota Attorney General Marty Jackley argued that states are losing massive sales tax revenue, estimated at tens of billions of dollars, needed for expenditures like infrastructure, education and healthcare. He said brick-and-mortar businesses are harmed by out-of-state companies with an unfair price advantage, and that newly developed software has solved the burdens identified in the Quill decision.

Why do online retailers oppose the change?

The lawyer for Wayfair, overstock.com and Newegg argued that overturning Quill would impose a massive burden on small online sellers. Navigating each individual state's tax laws would be very challenging for online retailers, especially small businesses and sellers on sites like eBay and Etsy. They believe the decision should be resolved in the legislature, not the Supreme Court.

Who already charges sales tax on online purchases?

Big online companies like Amazon and Walmart already charge customers sales tax for online purchases made directly from the company, rather than from third-party sellers. Small sellers with no physical location don't have to charge sales tax outside of their own state, which is why small online boutiques and independent sellers don't charge their customers sales tax.

When is the Supreme Court decision expected?

A decision by the Supreme Court is expected in late June. Billshark will keep consumers up to date on any major changes that result from the ruling.

Save on the Bills You Just Read About

Billshark negotiates your bills for you — no savings, no fee.

Estimate My Savings

Sales Tax for Online Purchases: Supreme Court Divided page context

Sales Tax for Online Purchases: Supreme Court Divided is a Billshark resource with information and navigation relevant to recurring bills, consumer choices, and savings decisions.

South Dakota v. Wayfair has the Supreme Court divided over online sales tax. See what each side argues and what a ruling could mean for you.

Visitors can use this page to review Billshark information and continue to the route that best matches their savings, support, or account needs.

Billshark publishes this information to help visitors understand monthly expenses, provider choices, and practical next steps.

The page connects visitors with related Billshark resources when they need additional detail or a more specific next step.

That satisfying feeling of skipping sales tax on an online purchase may soon change.

You know that feeling of joy and satisfaction you experience when you save on sales tax on an online purchase?.

South Dakota v.

The South Dakota Attorney General Marty Jackley argued that states are losing massive sales tax revenue.

The lawyer for the three internet retailers in this case, Wayfair, overstock.com and Newegg, argued that a ruling that overturns Quill would impose a massive burden on small online sellers.

Currently, big online companies like Amazon and Walmart already charge their customers sales tax for online purchases that are made directly from the company, rather than third-party sellers.

On the other hand, brick-and-mortar stores are suffering a decline in in-store sales and many are frustrated by what’s known in the retail world as “showrooming.”.

A decision by the Supreme Court is expected in late June so stay tuned.

South Dakota Attorney General Marty Jackley argued that states are losing massive sales tax revenue, estimated at tens of billions of dollars, needed for expenditures like infrastructure, education and healthcare.

The lawyer for Wayfair, overstock.com and Newegg argued that overturning Quill would impose a massive burden on small online sellers.

Big online companies like Amazon and Walmart already charge customers sales tax for online purchases made directly from the company, rather than from third-party sellers.

A decision by the Supreme Court is expected in late June.

Billshark negotiates your bills for you — no savings, no fee.

Billshark helps lower internet, wireless, cable, satellite radio, and other monthly bills.

Our experts handle providers for customers and share updates throughout the process.

Customers pay only when Billshark finds savings on eligible bills.

1 The Case Before the Court.

2 What Each Side Is Arguing.

3 How Online Sales Tax Works Today.

4 What Happens Next.

Frequently Asked Questions.

What is South Dakota v.

Why does South Dakota want to overturn Quill?.

Why do online retailers oppose the change?.

Who already charges sales tax on online purchases?.

When is the Supreme Court decision expected?.

5 Essential Tax Moves to Maximize Year-End Savings.

Avoid Tax Relief Scams: Red Flags and Smart Tips.

5 Smart Ways to Invest Your Tax Refund for Growth.

How In-App Purchases Hurt Consumers and Raise Costs.

Back-to-School: Smart Tips for Online Shopping Deals.

Holiday Price Protection: Maximize Your Savings.

AT&T Sued for Hidden Fees: What Customers Need to Know.

Government Actions: The Future of Consumer Protection.

6 Legit Ways to Earn Passive Income While You Sleep.

Save on the Bills You Just Read About.

All Negotiation Services.

Corporate / Business Billing.

Blog - All Categories.

Quill Corp v.

Taxes 5 Essential Tax Moves to Maximize Year-End Savings Steven McKean · Dec 6, 2017 · 3 min read Read article →.

Taxes Avoid Tax Relief Scams: Red Flags and Smart Tips Steven McKean · May 14, 2018 · 4 min read Read article →.

Home Budgeting & Finance 5 Smart Ways to Invest Your Tax Refund for Growth Michel Mora · Apr 20, 2018 · 7 min read Read article →.

News How In-App Purchases Hurt Consumers and Raise Costs Steven McKean · Feb 13, 2019 · 2 min read Read article →.

Savings Tips Back-to-School: Smart Tips for Online Shopping Deals Steven McKean · Aug 11, 2017 · 3 min read Read article →.

Savings Tips Holiday Price Protection: Maximize Your Savings Carolyn Depoto · Dec 8, 2017 · 3 min read Read article →.

News AT&T Sued for Hidden Fees: What Customers Need to Know Carolyn Depoto · Jul 10, 2019 · 4 min read Read article →.

News Government Actions: The Future of Consumer Protection Carolyn Depoto · Apr 23, 2018 · 4 min read Read article →.

Home Budgeting & Finance 6 Legit Ways to Earn Passive Income While You Sleep Michel Mora · Apr 13, 2018 · 6 min read Read article →.

See more posts for other categories ›.

Estimate My Savings.

College tuition articles.

Entertainment articles.

NerdWallet articles.

Shark Tank articles.

Social media articles.

Uncategorized articles.

Fairpoint bill savings.

Spectrum bill savings.

Terminix bill savings.

This resource helps readers connect a recurring-cost question with the Billshark information that provides the most relevant detail.

Visitors can review the available page sections, compare related topics, and continue to a more specific guide when they need additional context.

Billshark organizes service information and educational resources to make common household-bill decisions easier to research and understand.

The information on this page supports practical questions about providers, subscriptions, account actions, consumer choices, and monthly costs.

Readers can use the navigation and related resources to move from a broad question into focused information that matches their situation.

The page is intended to support informed decisions by pairing concise explanations with paths to deeper Billshark resources.

Relevant links help visitors compare options, understand recurring charges, and identify the next action that fits their current need.

Billshark content is designed to help consumers recognize recurring expenses and consider practical ways to manage them more effectively.

Visitors can return to this resource when they need to compare a new question with earlier information about services, bills, or savings.

The content connects everyday provider and subscription choices with broader guidance about monthly budgeting and household expenses.

Each page section contributes context that helps readers decide whether they need service guidance, account support, or an educational article.

Readers can use the available information to prepare questions, review options, and continue toward a useful next step at their own pace.

Billshark maintains connected resources so visitors can discover related guidance without losing the context of their original question.

The route supports research by making it easier to identify relevant details before choosing a provider, service, subscription, or account action.

Practical consumer information can help visitors understand why recurring charges change and which details are useful to review before responding.

The page brings together information that supports clearer conversations about bills, service choices, recurring expenses, and savings opportunities.

Visitors can use related resources to compare common terms, understand tradeoffs, and find the information that best fits their monthly-cost question.

Billshark guidance focuses on practical consumer decisions and helps readers move from general awareness into a more specific resource when needed.

The resource is part of a broader collection that connects household cost questions with provider information, support materials, and educational content.

Readers can explore the page before taking action, which helps them understand available options and identify the most relevant follow-up information.

The information is organized to support comparison, continued reading, and practical next steps without requiring visitors to search unrelated topics.

Recurring bills often involve provider rules, service terms, subscriptions, or account details, and this resource helps visitors locate useful context.

Visitors can use Billshark resources to build a clearer picture of recurring costs before deciding which service, support path, or guide to open next.

Related guidance helps readers distinguish between broad consumer information and the more detailed page that addresses a specific provider or billing topic.

The page supports a research-first approach by connecting relevant information with the next available resource for deeper explanation.

Billshark publishes resources that help visitors understand recurring expenses, evaluate common choices, and continue toward an appropriate next step.

Readers can compare the page content with linked resources when they want more detail about household bills, subscriptions, services, or account actions.

The route helps visitors keep their research organized by grouping related information around practical consumer and monthly-expense questions.

Useful context can make it easier to identify the details that matter before reviewing a bill, changing a service, contacting support, or exploring savings.

This page contributes to the Billshark resource network by connecting clear information with related paths for continued reading and action.

Visitors can revisit the information as their needs change and use related resources to investigate another aspect of recurring costs or service management.

just hired Billshark to lower their bill.