US Supreme Court will revisit ruling on collecting internet sales tax
The United States Supreme Court has agreed to hear the state of South Dakota’s argument that a 26-year-old tax-related ruling be overturned, which could free state and local governments to collect billions in internet sales tax, according to a report today from Bloomberg. The 1992 ruling, from Quill v. North Dakota, centered on a mail-order business and inadvertently set a far-reaching precedent for e-commerce companies by only allowing states to collect sales tax from businesses with a “physical presence” in a given state. Critics of the ruling have long decried the clause by saying it makes no sense in the age of Amazon and internet e-commerce, and that it disadvantages brick-and-mortar retailers and state and local governments.
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