by: Tony Pimentel
Wayfair sold products to South Dakota residents, however, it did not collect sales tax as it did not have a physical presence in South Dakota. Under the physical presence test, it did not have to do so. South Dakota could have subpoenaed the required data and collected the use tax from its citizens, but it decided it was much easier to file suit to force Wayfair to collect the tax. The Supreme Court sided with South Dakota and ordered Wayfair to collect the tax based on the enabling statute.
