Overstock says will fight 'brash attempt' by SD to 'evade constitution'
Overstock.com said that it recognizes the attention that South Dakota's sales tax case has generated, and looks forward to the opportunity to convince the Supreme Court to confirm its prior rulings protecting the free flow of interstate commerce from overreaching state tax laws. South Dakota's appeal to the U.S. Supreme Court seeks to reverse a lower court decision rejecting the state's effort to abrogate Quill Corp v. North Dakota. South Dakota's petition strives to permit the state to expand its tax authority beyond its borders and impose obligations on out-of-state sellers with no physical presence in the state. "We're confident that as the Supreme Court delves deeper into the issue, it will confirm that the doctrine stated in Quill Corp. v. North Dakota is clear and fair on this matter," said Jonathan Johnson, president of Overstock's subsidiary, Medici Ventures, Inc., and a member of Overstock's board of directors, "That said, unless Congress intercedes, under the U.S. Constitution any retailer without a physical presence in South Dakota cannot be required to collect and remit state sales tax." "States do not have power to conscript individuals or organizations that do not have a physical presence within their state to do the state's job of collecting sales tax," continued Johnson. "It's a straightforward notion. And, disregard for the precedent would have severe consequences for future businesses and individuals." "We will confidently stand shoulder to shoulder with our competitors to fight this brash attempt by the State of South Dakota to evade constitutional law," concluded Johnson.