South Dakota v. Wayfair, Inc.

Summary

The Court overruled Quill Corp. v. North Dakota and National Bellas Hess, Inc. v. Department of Revenue of Ill., holding that a seller’s physical presence in a State is not required to satisfy the Commerce Clause’s substantial nexus requirement. The physical presence rule was deemed unsound and incorrect in the modern economy, allowing States to require remote sellers to collect sales taxes if they have substantial virtual or economic contacts with the State. Separate opinions filed by Justices Thomas and Gorsuch agreed with the Court’s decision but reserved judgment on the dormant Commerce Clause doctrine.