Hi everyone,
My name's Ilyssa and I manage public policy and research at Etsy.
Today, the Supreme Court released its decision in South Dakota v. Wayfair, overturning Quill, a decision that has kept states from taxing purchases made from online sellers that lack any physical presence in the state. While today’s decision is not the one we advocated for (
http://etsy.me/2yyJxgI), the Supreme Court did acknowledge the important difference between big internet retailers and the creative entrepreneurs on our platform.
There are currently significant complexities in the thousands of state and local sales tax laws, including different minimum thresholds, tax holidays, and product tax category rules. Today’s ruling removes physical presence as a requirement before a state can require a seller to charge and collect sales tax on orders shipped to that state. The impact on sellers outside the United States has yet to be determined. Some states (such as Pennsylvania and Washington) have shifted the obligation to collect tax from sellers to marketplaces, such as Etsy. Those “marketplace” laws remain in place for the time being.
By vacating Quill, we believe there is now a call to action for Congress to create a simple, fair federal solution for microbusinesses. Voice your support by signing a petition urging Congress to act swiftly and in the best interest of the entrepreneurs they represent:
https://action.etsy.com/0Km2ZJJ
