Narrative Opinion Summary
This case involves a legal dispute over the application of state sales tax to internet sellers lacking a physical presence within South Dakota. Initially, the South Dakota Supreme Court upheld a summary judgment in favor of the defendants, internet sellers, on the grounds that the state's statutory requirement for tax collection violated the Commerce Clause. This decision was subsequently vacated by the U.S. Supreme Court on June 21, 2018, which remanded the case for further consideration of any remaining Commerce Clause claims in light of its recent opinion in South Dakota v. Wayfair, Inc. Following this directive, the South Dakota Supreme Court reversed its earlier decision and remanded the matter back to the circuit court for proceedings consistent with the higher court's ruling. The motion to remand was unopposed by the internet sellers. Ultimately, the case was returned for additional examination of the applicability of sales tax obligations under the revised interpretation of the Commerce Clause, as delineated by the U.S. Supreme Court's mandate.
Legal Issues Addressed
Commerce Clause and Internet Sales Taxationsubscribe to see similar legal issues
Application: The South Dakota Supreme Court initially affirmed that requiring internet sellers without physical presence to collect sales tax violated the Commerce Clause.
Reasoning: On September 13, 2017, the South Dakota Supreme Court affirmed a circuit court's summary judgment favoring internet sellers, ruling that a statutory requirement for these sellers without physical presence in the state to collect and remit sales tax violated the Commerce Clause.
Procedural Rule on Remand from Higher Courtssubscribe to see similar legal issues
Application: Upon remand from the U.S. Supreme Court, the South Dakota Supreme Court reversed the circuit court's summary judgment and sent the case back to the lower court for further proceedings.
Reasoning: As a result, the South Dakota Supreme Court reversed the circuit court's order granting summary judgment to the defendants and remanded the case for further proceedings consistent with the U.S. Supreme Court's opinion in South Dakota v. Wayfair, Inc.
U.S. Supreme Court's Authority to Vacate State Court Judgmentssubscribe to see similar legal issues
Application: The U.S. Supreme Court vacated the South Dakota Supreme Court's judgment and remanded the case for proceedings consistent with its opinion on the Commerce Clause.
Reasoning: However, on June 21, 2018, the U.S. Supreme Court vacated this judgment and remanded the case for further proceedings in line with its opinion, allowing for any remaining claims regarding the Commerce Clause to be addressed on remand.