BETHESDA, Md. –
January 12, 2018 – In an important development, the United States Supreme Court
today decided to hear a case brought by the state of South Dakota seeking to
overturn the 1992 Quill v. North Dakota
decision that has prevented states from collecting sales tax on purchases made
over the internet. The petition, filed
by the attorney general for South Dakota, had requested that the U.S. Supreme
Court review a state Supreme Court decision, which denied the state the ability
to enforce a 2016 law passed in South Dakota that required state sales tax be
collected on all internet sales.
The Auto Care Association had joined nine other trade
associations in signing an amicus
brief which supported the South Dakota petition. The brief had echoed the
petitioner’s request that the Court overturn the 1992 decision, citing the real
world impacts on brick-and-mortar businesses due to the competitive
disadvantage brought on by having to charge sales tax while online competition
does not. The practice of “showrooming,” where consumers check out products in
stores and then purchase the product over the internet due to lower prices, was
highlighted as an ongoing concern. The brief further cited the significant
investment in employee training and showroom displays, taken advantage of by
the consumer prior to them choosing to buy online.
“The Auto Care Association is pleased that the Court has
taken this important step and we stand ready to assist petitioners in
demonstrating to the Court why it is critical that the Quill decision be
overturned such that fairness can be returned to the marketplace,” said Aaron Lowe, senior vice president, regulatory and government affairs, Auto Care Association.
For more information, please contact Aaron Lowe at firstname.lastname@example.org.