June 21, 2018
U.S. Supreme Court Expands States’ Extraterritorial Taxing Authority
States now have the power to tax out-of-state companies that make sales to in-state consumers, according to a U.S. Supreme Court decision with potentially far-reaching consequences. In South Dakota v. Wayfair, Inc. (No. 17-494, June 21, 2018), the Court overruled its prior precedents that limited state taxes to only those companies having a physical presence in the taxing state.