Citation: South Dakota v. Wayfair, Inc. , 138 S. Ct. 2080 (2018).Citation:South Dakota v. Wayfair, Inc.

Why This Case Was a Turning Point

Wayfair overturned decades of precedent from Quill (1992), allowing states to require remote sellers to collect sales tax based on sales volume, not physical presence. The Court emphasized that e-commerce blurred state lines and physical presence no longer captured modern commerce.Quill

How It Affects Everyday Citizens

• Online prices now include sales tax: Consumers see more consistent tax on remote purchases, reducing surprises at filing time.Online prices now include sales tax:
• Fairness for local stores: Main-street businesses no longer compete with online sellers on a tax-free price gap.Fairness for local stores:
• Better-funded state services: Sales tax collections now flow to states even when purchases come from out-of-state retailers, supporting schools, roads, and safety nets.Better-funded state services:

Impact on Small Businesses

Wayfair created compliance complexity for small and mid-sized online sellers who must track thresholds in multiple states, register, collect, and remit. States responded with simplified systems (e.g., SST states) and safe harbors, but compliance software costs and filing burdens increased.

Practical Takeaways

• Track your revenue by state monthly to see if you cross any economic nexus thresholds.
• Use sales tax automation tools to manage rate changes and filing calendars.
• Consider marketplace facilitator rules—many platforms now collect on your behalf.