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High Court May Soon See South Dakota Online Sales Tax Case

South Dakota may win the sprint to the U.S. Supreme Court now that a case over its digital sales tax law is returning to state court, according to a tax practitioner.

Randy Ferris, a Sacramento-based executive director with Ernst & Young LLP, said that the U.S. District Court for the District of South Dakota’s decision to remand a challenge over the state’s economic nexus statute (S.B. 106) may indicate that the litigation will reach the high court before Alabama’s litigation over its economic nexus regulation (Administrative Rule 810-6-2-.90.03).


Marvin A. Kirsner, a Boca Raton-based tax shareholder with Greenberg Traurig LLP, told Bloomberg BNA that the statute’s directive to put a case ‘‘on the front burner’’ was likely a motivation behind South Dakota’s remand request.

‘‘I think the whole point of South Dakota wanting to get it back into state court was to get it to the steps of the U.S. Supreme Court faster,’’ he said.

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