For decades, Internet retailers have exploited a legal loophole that allowed them to not have to collect sales taxes on any products they sold even in states where they have no physical presence. The Supreme Court recently moved to close that loophole in their decision in the South Dakota v Wayfair case. The decision, in South Dakota v. Wayfair Inc., was a victory for brick-and-mortar businesses that were ta competitive disadvantage by being required to charge sales taxes while many online competitors do not. In 1992, the court ruled in Quill Corporation v. North Dakota that the Constitution bars states from requiring businesses to collect sales tax unless they have a substantial connection to the state. The Quill decision helped pave the way for the growth of online retail by letting companies sell nationwide without worrying about having to pay the differing state and local taxes that vary from state to state.
Florida Retail Federation President & CEO R. Scott Shalley had the following statement regarding the U.S. Supreme Court's ruling in the case of South Dakota v. Wayfair:
“The ruling is great news for Florida retailers and the retail industry nationwide. Retailers have been adamant in seeking equity in taxation of bricks and mortar and online sales. This decision paves the way for a level playing field throughout the industry. The Florida Retail Federation looks forward to working with Florida’s legislative leaders and the Department of Revenue to ensure fair and equitable application of the law.”