DALLAS – Today the Supreme Court heard oral arguments in the landmark Internet sales tax case, South Dakota vs. Wayfair, which could allow states to force businesses in other states to collect internet sales taxes for them.
The Institute for Policy Innovation (IPI), along with several other organizations, filed an amicus brief in support of Wayfair, arguing that remote taxation not only tramples on Supreme Court precedent but opens the gates to an unprecedented expansion of taxation and taxpayer harassment by out-of-state tax collectors.
The physical presence rule established by Bellas Hess and reaffirmed in Quill “continues to serve as a vital limit” on the power of states to force out-of-state retailers to serve as the state’s private tax collectors, states the brief.
“The Supreme Court has already found that states exceed their constitutional authority if they force retailers in other states to collect taxes for them,” said IPI president Tom Giovanetti. “We have been proud to intervene in this critical case to protect the Constitutional order and protect taxpayers from being subject by a tax grab by the states.”
In filing the brief, IPI joined with the National Taxpayers Union Foundation, Americans for Prosperity, Freedomworks, Freedom Partners, and the Chamber of Commerce.
The Institute for Policy Innovation (IPI) is an independent, nonprofit public policy organization based in Dallas. IPI president Tom Giovanetti is available for interview by contacting Erin Humiston at (972) 874-5139, or erin@IPI.org.
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