U.S. Senator Mike Enzi, R-Wyo., applauded the U.S. Supreme Court today for overturning its 1992 decision, Quill Corp. v. North Dakota, which prohibited states from imposing a local tax on out-of-state retailers that do not have a physical presence in the state.
In its decision in South Dakota v. Wayfair, the court wrote that “though Quill was wrong on its own terms when it was decided in 1992, since then the Internet revolution has made its earlier error all the more egregious and harmful.”
“The Supreme Court’s decision today is a win for those brick-and-mortar stores that support our communities and the state and local governments that rely on sales and use taxes to provide essential services,” Enzi said. “I am glad the Court realized the importance of closing this gaping loophole in our tax law that denied states the right to enforce their own laws and to collect the taxes they were owed. This issue has always been about fairness and this ruling will help local businesses, states and local governments.”
Enzi has championed bipartisan legislation in the Senate for many years, known as the Marketplace Fairness Act, that would give states the right to require out-of-state businesses or online retailers to collect and remit the sales and use taxes that are already owed under current law.