Fasano Statement re: Supreme Court Ruling on States Taxing Online Retailers

Senate Republican President Pro Tempore Len Fasano (R-North Haven) released the following statement regarding the Supreme Court decision in South Dakota v. Wayfair Inc., et al. released today.

“Today’s Supreme Court ruling opens the door to allow states to tax virtually all internet sales, leveling the playing field between online retailers and brick-and-mortar businesses. This decision marks a significant change in federal law. It is a major win for retailers with physical storefronts who have long struggled to compete with online retailers. Connecticut passed legislation this year in Public Act 18-152 to allow for the taxation of some online retailers. However, this ruling means the state can now further change our laws. If the legislature wants to reflect this ruling, we should go back in to session to make our tax policy more fair and balanced and eliminate the disadvantage retailers with physical locations in Connecticut have long struggled to overcome.”

Background:

The Supreme Court ruling today overturns the Supreme Court ruling in Quill Corp. v. North Dakota (91-0194), 504 U.S. 298 (1992).

In Connecticut, lawmakers recently passed Public Act 18-152 with an effective date of December 1, 2018 which requires online companies to remit sales tax to the state if they have at least 200 transactions or collect at least $250,000 in gross receipts from our state in a 12 month period.  Because Quill has been overruled, the Connecticut legislature now has the ability to make further changes to this state tax law.