Document ID: ./input/supremecourt_opinions/opinions/17pdf/17-494_j4el.pdf
Page Number: 27

22 

SOUTH DAKOTA v. WAYFAIR, INC. 

Opinion of the Court 

ting  the  tax  on  a  transaction  intended  to  be  taxed  only 
once.  See Brief for Law Professors et al. as Amici Curiae 
7, n. 5.  Complex state tax systems could have the effect of 
discriminating  against  interstate  commerce.  Concerns 
that complex state tax systems could be a burden on small 
business are answered in part by noting that, as discussed 
below, there are various plans already in place to simplify 
collection;  and  since  in-state  businesses  pay  the  taxes  as
well, the risk of discrimination against out-of-state sellers 
is  avoided.    And,  if  some  small  businesses  with  only  de 
minimis  contacts  seek  relief  from  collection  systems 
thought  to  be  a  burden,  those  entities  may  still  do  so
under  other  theories.  These  issues  are  not  before  the 
Court  in  the  instant  case;  but  their  potential  to  arise  in
some  later  case  cannot  justify  retaining  this  artificial,
anachronistic  rule  that  deprives  States  of  vast  revenues
from major businesses.

For these reasons, the Court concludes that the physical
presence  rule  of  Quill  is  unsound  and  incorrect.    The 
Court’s decisions in Quill Corp. v. North Dakota, 504 U. S. 
298  (1992),  and  National  Bellas  Hess,  Inc.  v.  Department 
of Revenue of Ill., 386 U. S. 753 (1967), should be, and now 
are, overruled. 

V 
In the absence of Quill and Bellas Hess, the first prong 
of  the  Complete  Auto  test  simply  asks  whether  the  tax
applies  to  an  activity  with  a  substantial  nexus  with  the
taxing State.  430 U. S., at 279.  “[S]uch a nexus is estab­
lished when the taxpayer [or collector] ‘avails itself of the
substantial privilege of carrying on business’ in that juris­
diction.”  Polar Tankers, Inc. v. City of Valdez, 557 U. S. 1, 
11 (2009).

Here,  the  nexus  is  clearly  sufficient  based  on  both  the
economic  and  virtual  contacts  respondents  have  with  the 
State.  The  Act  applies  only  to  sellers  that  deliver  more