Tax Commissioner Ryan Rauschenberger issued the following statement today as the U.S. Supreme Court announced its ruling on the remote seller sales tax case South Dakota vs. Wayfair. South Dakota aimed to overturn the 1992 Supreme Court case, Quill vs. North Dakota, when the Supreme Court ruled that North Dakota could not require a mail order company to collect its sales tax unless they had a physical presence in the state.
“I was pleased to hear that the Supreme Court overturned Quill vs. North Dakota.” Rauschenberger said. “This will go a long way to ensure local businesses are on a level playing field with online retailers. I’m glad the Supreme Court was able to recognize the unfair advantage online retailers have. The North Dakota Legislature passed a law during the 2017 session to address remote seller sales tax. Remote sellers will be required to collect and remit sales tax to North Dakota only if they make a minimum of either 200 sales or $100,000 in sales per year in North Dakota, even if they don’t have a physical presence here. Over the next few weeks, our office will be working to implement this new law change.”
Prior to this ruling, businesses were required to collect and remit sales tax only if they have a physical presence in the state.
More details on collecting and remitting North Dakota sales tax for remote sellers will be shared in the coming weeks as the North Dakota Office of State Tax Commissioner works on administration of this change.
Details on the ruling may be found at www.nd.gov/tax/remoteseller. The U.S. Supreme Court opinion on this case may be found at www.supremecourt.gov/opinions/17pdf/17-494_j4el.pdf