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If Online Sellers, South Dakota Settle Tax Beef, Who Wins?

August 6, 2018
Bloomberg Tax

In an article published by Bloomberg on August 6, 2018, state and local tax attorney Jennifer Weidler Karpchuk provides insight into how a settlement in the landmark South Dakota v. Wayfair, Inc. could affect both parties. Karpchuk said a settlement would economically benefit the e-retailers and allow them a chance to negotiate terms. “E-Retailers may gain a limited look-back period, or potentially no look-back period, and instead merely a requirement that they collect on a going forward basis. If there is a look-back period, it could be limited and they could receive a waiver of interest and penalties, or any combination of that,” she said.

For South Dakota, a settlement would lift the injunction that is currently prohibiting the state from enforcing its economic nexus law, and allow the state to begin implementing its sales tax collection laws. However, negotiations to reach a settlement could push South Dakota to delay its implementation date, causing the state to lose out on months of revenue, she said.