Document ID: ./input/supremecourt_opinions/opinions/17pdf/17-494_j4el.pdf
Page Number: 38.0

6 

SOUTH DAKOTA v. WAYFAIR, INC. 

ROBERTS, C. J., dissenting 

will  likely prove  baffling  for  many  retailers.    Over  10,000 
jurisdictions  levy  sales  taxes,  each  with  “different  tax
rates,  different  rules  governing  tax-exempt  goods  and
services, different product category definitions, and differ-
ent  standards  for  determining  whether  an  out-of-state 
seller  has  a  substantial  presence”  in  the  jurisdiction.
Sales  Taxes  Report  3.  A  few  examples:  New  Jersey  knit-
ters  pay  sales  tax  on  yarn  purchased  for  art  projects,  but 
not  on  yarn  earmarked  for  sweaters.    See  Brief  for  eBay, 
Inc.,  et al.  as  Amici  Curiae  8,  n. 3  (eBay  Brief ).    Texas 
taxes sales of plain deodorant at 6.25 percent but imposes 
no  tax  on  deodorant  with  antiperspirant.    See  id.,  at  7. 
Illinois  categorizes  Twix  and  Snickers  bars—chocolate-
and-caramel  confections  usually  displayed  side-by-side  in 
the  candy  aisle—as  food  and  candy,  respectively  (Twix 
have  flour;  Snickers  don’t),  and  taxes  them  differently.
See id., at 8; Brief for Etsy, Inc., as Amicus Curiae 14–17 
(Etsy Brief ) (providing additional illustrations). 

The  burden  will  fall  disproportionately  on  small  busi-
nesses.  One  vitalizing  effect  of  the  Internet  has  been
connecting  small,  even  “micro”  businesses  to  potential 
buyers  across  the  Nation.  People  starting  a  business
selling their embroidered pillowcases or carved decoys can 
offer  their  wares  throughout  the  country—but  probably 
not  if  they  have  to  figure  out  the  tax  due  on  every  sale.
See  Sales  Taxes  Report  22  (indicating  that  “costs  will 
likely  increase  the  most  for  businesses  that  do  not  have
established  legal  teams,  software  systems,  or  outside 
counsel to assist with compliance related questions”).  And 
the  software  said  to  facilitate  compliance  is  still  in  its 
infancy,  and  its  capabilities  and  expense  are  subject  to 
debate.  See Etsy Brief 17–19 (describing the inadequacies 
of  such  software);  eBay  Brief  8–12  (same);  Sales  Taxes 
Report 16–20 (concluding that businesses will incur “high”
compliance  costs).  The  Court’s  decision  today  will  surely 
have  the  effect  of  dampening  opportunities  for  commerce