Home Business Supreme Court Lets States Force Online Retailers To Collect Sales Tax (Video)

Supreme Court Lets States Force Online Retailers To Collect Sales Tax (Video)

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States may force online retailers to collect potentially billions of dollars in sales taxes, the U.S. Supreme Court said in a major ruling on Thursday that undercut an advantage many e-commerce companies have enjoyed over brick-and-mortar rivals.

 WASHINGTON (Reuters) – States may force online retailers to collect potentially billions of dollars in sales taxes, the U.S. Supreme Court said in a major ruling on Thursday that undercut an advantage many e-commerce companies have enjoyed over brick-and-mortar rivals.

In a 5-4 ruling reviving a South Dakota law challenged by Wayfair Inc, Overstock.com Inc and Newegg Inc, the justices overturned a 1992 high court precedent that had barred states from requiring businesses with no “physical presence” there, like out-of-state online retailers, to collect sales taxes.

Shares of online retailers fell following the ruling, which opened the door to a new revenue stream to fill state coffers – up to $13 billion annually, according to a federal report.

“Big Supreme Court win on internet sales tax – about time!” President Donald Trump, who has bashed online retail powerhouse Amazon.com Inc and whose administration backed South Dakota, said on Twitter. “Big victory for fairness and for our country. Great victory for consumers and retailers.”

Reuters, excerpt posted on  SouthFloridaReporter.com, June 22, 2018

Video by Reuters

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