October Term 2017 · Docket 17-494
Should states tax remote sellers without a physical presence?
South Dakota seeks to collect sales tax from online retailers. Wayfair argues the current rule bars this collection.
Verified source milestones
- — An official oral-argument transcript was verified.
The arguments, in order
This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.
Argument 1 ·
What happened at the argument
South Dakota argues the physical presence rule causes revenue loss.
Wayfair argues Congress has not addressed this issue recently.
questions
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 10, lines 11-23 — Transcript, file page 10, lines 11-23
- Official Supreme Court Transcript — file page 10, lines 55-27 — Transcript, file page 10, lines 55-27
- Official Supreme Court Transcript — file page 11, lines 41-19 — Transcript, file page 11, lines 41-19
- Official Supreme Court Transcript — file page 19, lines 55-51 — Transcript, file page 19, lines 55-51
- Official Supreme Court Transcript — file page 32, lines 19-7 — Transcript, file page 32, lines 19-7
- Official Supreme Court Transcript — file page 4, lines 11-21 — Transcript, file page 4, lines 11-21
- Official Supreme Court Transcript — file page 4, lines 23-45 — Transcript, file page 4, lines 23-45
- Official Supreme Court Transcript — file page 4, lines 47-9 — Transcript, file page 4, lines 47-9
- Official Supreme Court Transcript — file page 5, lines 25-31 — Transcript, file page 5, lines 25-31
- Official Supreme Court Transcript — file page 6, lines 45-47 — Transcript, file page 6, lines 45-47
- Official Supreme Court Transcript — file page 7, lines 21-25 — Transcript, file page 7, lines 21-25
- Official Supreme Court Transcript — file page 7, lines 33-37 — Transcript, file page 7, lines 33-37
- Official Supreme Court Transcript — file page 7, lines 51-17 — Transcript, file page 7, lines 51-17
- Official Supreme Court Transcript — file page 7, lines 9-15 — Transcript, file page 7, lines 9-15
- Official Supreme Court Transcript — file page 8, lines 29-41 — Transcript, file page 8, lines 29-41
- Official Supreme Court Transcript — file page 9, lines 35-45 — Transcript, file page 9, lines 35-45
A citizen's guide to the whole case
What this case is about
South Dakota wants to collect sales tax from remote sellers. Wayfair argues the physical presence rule blocks this collection.
Official sources for this section
- Official Supreme Court Transcript — file page 19, lines 55-51 — Transcript, file page 19, lines 55-51
- Official Supreme Court Transcript — file page 32, lines 19-7 — Transcript, file page 32, lines 19-7
- Official Supreme Court Transcript — file page 4, lines 23-45 — Transcript, file page 4, lines 23-45
How the case got here
The Supreme Court heard oral argument in this case on April 17, 2018.
Official sources for this section
- Official Supreme Court Transcript — file page 4, lines 11-21 — Transcript, file page 4, lines 11-21
What each side wants
South Dakota wants to collect sales tax from remote sellers.
Wayfair wants to keep the physical presence rule intact.
Official sources for this section
- Official Supreme Court Transcript — file page 19, lines 55-51 — Transcript, file page 19, lines 55-51
- Official Supreme Court Transcript — file page 32, lines 19-7 — Transcript, file page 32, lines 19-7
- Official Supreme Court Transcript — file page 4, lines 23-45 — Transcript, file page 4, lines 23-45
What each side says
South Dakota argues the physical presence rule causes revenue loss.
Wayfair argues Congress has not addressed this issue recently.
Official sources for this section
- Official Supreme Court Transcript — file page 19, lines 55-51 — Transcript, file page 19, lines 55-51
- Official Supreme Court Transcript — file page 32, lines 19-7 — Transcript, file page 32, lines 19-7
- Official Supreme Court Transcript — file page 4, lines 23-45 — Transcript, file page 4, lines 23-45
What the justices asked
Justice Sotomayor asked about costs imposed on small businesses.
Justice Kagan asked why Congress has not acted for twenty-five years.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 11-23 — Transcript, file page 10, lines 11-23
- Official Supreme Court Transcript — file page 10, lines 55-27 — Transcript, file page 10, lines 55-27
- Official Supreme Court Transcript — file page 11, lines 41-19 — Transcript, file page 11, lines 41-19
- Official Supreme Court Transcript — file page 4, lines 47-9 — Transcript, file page 4, lines 47-9
- Official Supreme Court Transcript — file page 5, lines 25-31 — Transcript, file page 5, lines 25-31
- Official Supreme Court Transcript — file page 6, lines 45-47 — Transcript, file page 6, lines 45-47
- Official Supreme Court Transcript — file page 7, lines 21-25 — Transcript, file page 7, lines 21-25
- Official Supreme Court Transcript — file page 7, lines 33-37 — Transcript, file page 7, lines 33-37
- Official Supreme Court Transcript — file page 7, lines 51-17 — Transcript, file page 7, lines 51-17
- Official Supreme Court Transcript — file page 7, lines 9-15 — Transcript, file page 7, lines 9-15
- Official Supreme Court Transcript — file page 8, lines 29-41 — Transcript, file page 8, lines 29-41
- Official Supreme Court Transcript — file page 9, lines 35-45 — Transcript, file page 9, lines 35-45
Why it matters
This case determines how states collect sales tax from remote sellers. It affects state budgets for education and infrastructure. It impacts the cost of compliance for small businesses.
Official sources for this section
- Official Supreme Court Transcript — file page 19, lines 55-51 — Transcript, file page 19, lines 55-51
- Official Supreme Court Transcript — file page 32, lines 19-7 — Transcript, file page 32, lines 19-7
- Official Supreme Court Transcript — file page 4, lines 23-45 — Transcript, file page 4, lines 23-45
What happens next
This article currently covers the argument record. Use the official docket link for later case activity.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 11-23 — Transcript, file page 10, lines 11-23
- Official Supreme Court Transcript — file page 10, lines 55-27 — Transcript, file page 10, lines 55-27
- Official Supreme Court Transcript — file page 11, lines 41-19 — Transcript, file page 11, lines 41-19
- Official Supreme Court Transcript — file page 4, lines 11-21 — Transcript, file page 4, lines 11-21
- Official Supreme Court Transcript — file page 4, lines 47-9 — Transcript, file page 4, lines 47-9
- Official Supreme Court Transcript — file page 5, lines 25-31 — Transcript, file page 5, lines 25-31
- Official Supreme Court Transcript — file page 6, lines 45-47 — Transcript, file page 6, lines 45-47
- Official Supreme Court Transcript — file page 7, lines 21-25 — Transcript, file page 7, lines 21-25
- Official Supreme Court Transcript — file page 7, lines 33-37 — Transcript, file page 7, lines 33-37
- Official Supreme Court Transcript — file page 7, lines 51-17 — Transcript, file page 7, lines 51-17
- Official Supreme Court Transcript — file page 7, lines 9-15 — Transcript, file page 7, lines 9-15
- Official Supreme Court Transcript — file page 8, lines 29-41 — Transcript, file page 8, lines 29-41
- Official Supreme Court Transcript — file page 9, lines 35-45 — Transcript, file page 9, lines 35-45
Official Court provenance
Official docket and case history · Official Supreme Court oral-argument detail page
Title and summary sources
- Official Supreme Court Transcript — file page 19, lines 55-51 — Transcript, file page 19, lines 55-51
- Official Supreme Court Transcript — file page 32, lines 19-7 — Transcript, file page 32, lines 19-7
- Official Supreme Court Transcript — file page 4, lines 23-45 — Transcript, file page 4, lines 23-45
- Official Supreme Court Transcript — file page 19, lines 55-51 — Transcript, file page 19, lines 55-51
- Official Supreme Court Transcript — file page 32, lines 19-7 — Transcript, file page 32, lines 19-7
- Official Supreme Court Transcript — file page 4, lines 23-45 — Transcript, file page 4, lines 23-45
Revision history
- Revision 1 · Official Transcript ·
Correction: Rewritten to the concise citizen-facing editorial standard.
- Revision 2 · Official Transcript ·
Correction: Migrated to the dated official Court activity contract without model use.