Digital Commerce 360 - The online sales tax debate has its day in the US Supreme Court

Steve DelBianco, executive director at e-commerce advocacy group NetChoice, agrees, noting that the justices asked questions about what happens if the tax software breaks, the costs for smaller businesses to collect for 46 states and if nearly all major e-commerce companies collect sales tax, hasn’t the problem already peaked.

“Tough questions asked by the justices today reveal that the court understands this is far more complicated than South Dakota has claimed,” DelBianco says. “Overturning Quill isn’t just flipping off a switch. It would cause national chaos.”

Axios - Supreme Court grapples with the online sales tax

A state-by-state sales tax system could force small sellers to rely on large online retail platforms like Amazon, Etsy and eBay who have the infrastructure to deal with the complexity, said Steve DelBianco, President and CEO of NetChoice, an e-commerce trade association.

Retail Dive - What's at stake in the e-commerce sales tax debate

“Think about the chaos that would ensue if in fact Quill were to disappear. It is not just 12,000 state and local jurisdictions. There’s also 550 Indian tribes who would assert any business anywhere in the country owes them sales tax for sales made to resident of that jurisdiction.” – Steve DelBianco, NetChoice, Executive Director

Norwalk Reflector - Supreme Court considers whether states should have power to tax all online sales

NetChoice, in a letter to Nebraska senators, cautioned that the bill would “violate the privacy expectations of Nebraska citizens … the state would know they are buying from vendors whose names reveal sensitive private information, such as medical conditions, financial problems, sexual preferences, and political beliefs.”

CNBC Opinion - The Supreme Court should not reverse internet sales tax law

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Op-ed by Steve DelBianco, President of NetChoice:

There’s no doubt that our current physical presence protection standard has enabled billions of dollars of economic growth. Time and again, Quill and the ITFA have stood up to legal and legislative challenges that threatened the digital economy.

The Supreme Court should recognize this on Tuesday, and leave our vibrant e-commerce ecosystem intact, while leaving it to Congress to make our nation’s laws.

 

Law 360 - Nixing Physical Presence Tax Rule Violates ITFA, Officials Say

DelBianco also said the ITFA issue could well come up in oral arguments if the solicitor general, who
will take 10 minutes on behalf of the state, repeats his reasoning that the court need not overturn
Quill but can simply exempt internet commerce from the physical presence requirement.

“If they do that they are going to run smack into the ITFA, and the defendants’ lawyers are going to
have a response to that,” DelBianco said. “That’s imposing a burden on internet retailers that is not
on catalog and other remote retailers.”

Politico - Morning Tax: What's going on in the states?

A separate brief from NetChoice argues that brushing aside the current precedent would violate the Internet Tax Freedom Act, though some experts are quite skeptical of that case.

Midland Paper - ACMA Files Amicus Brief in South Dakota v. Wayfair Supreme Court Case; Asks Court to Upheld Quill Precedent

In January the U.S. Supreme Court granted a petition for a Writ of Certiorari to the Supreme Court of South Dakota. Following the hearing, the high court is expected to render its decision by the end of the current term in June. Along with its coalition partner organization NetChoice, the ACMA will host a press conference immediately following the April 17th hearing on the Supreme Court steps.

Technology & Marketing Law Blog - District Court Ruling Highlights Congress’ Hastiness To Pass ‘Worst of Both Worlds FOSTA’– Doe 1 v. Backpage

UPDATE: NetChoice says: “While the recently-enacted Allow States and Victims to Fight Online Sex Trafficking Act (FOSTA) has provided useful new tools for prosecutors, its amendment of Section 230 was never necessary to reach its goal.”

NBC News - Supreme Court set to decide if states can tax Internet sales

NetChoice, a trade association of Internet retailers, says the tax requirement would hurt small Internet companies, forcing them to comply with “overbearing tax compliance burdens.”