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Supreme Court Rules States Can Collect Sales Tax on Online Purchases

Tuesday, July 10, 2018   (0 Comments)
Posted by: William Higgins
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On June 21st the U.S. Supreme Court ruled that states are allowed collect sales tax on remote Internet sales. This decision represents a significant victory for brick and mortar marine retailers.

Last year, the South Dakota Supreme Court ruled that a 2016 law requiring out-of-state internet retailers to collect sales tax violates a 1992 U.S. Supreme Court decision that said retailers are not required to collect sales tax in states where they do not have a physical presence. The state appealed the decision, and the Court reversed its 1992 decision today.

Prior to the decision some online retailers did not collect sales tax, creating a competitive disadvantage for traditional retailers, especially for higher priced marine parts and accessories.

You can learn more about e-fairness issues at www.efairness.org


If you have any questions about legislative issues, or something happening in your state, please contact Will Higgins.


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