Sales Tax Case Imposes Significant Financial Burden on Small Businesses

April 17, 2023 Last Edit: March 19, 2026

Sales Tax Case Imposes Significant Financial Burden on Small Businesses

WASHINGTON, D.C. (April 17, 2023) – NFIB filed an amicus brief in the case Quad Graphics, Inc. v. North Carolina Department of Revenue at the U.S. Supreme Court. The case concerns whether the North Carolina Supreme Court wrongfully held that taxing authorities don’t have to follow the United States Supreme Court’s decision in McLeod v. J.E. Dilworth Co. Dilworth said that a state cannot tax sales that occur outside its borders. “Small businesses pay for the administrative costs of computing, collecting, and remitting sales taxes,” said Beth Milito, Executive Director of NFIB Small Business Legal Center. “If the North Carolina Supreme Court’s decision is upheld, it will allow more states to impose the significant financial and administrative burdens of sales tax collection on out-of-state manufacturers and small businesses. We urge the Supreme Court to grant the petition for review.” NFIB’s brief argues two main points: 1) Dilworth remains good law, and 2) allowing the North Carolina Supreme Court’s decision to go unreviewed will hurt manufacturers and small businesses. NFIB filed the brief with the National Association of Manufacturers.

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