Supreme Court is looking at online sales tax issue

According to The Hill

The Supreme Court on Friday agreed to hear a case about whether states can require out-of-state online retailers to collect their sales taxes.

In agreeing to hear the case, South Dakota v. Wayfair, the court will revisit a 1992 decision in which it ruled that states could only require remote sellers to collect their sales taxes if the business had a physical presence in the state.

State and local governments have been pushing for a greater ability to collect sales taxes from internet purchases in recent years, as the growth of e-commerce has made it harder for governments to reach their revenue targets.

The Senate passed bipartisan legislation in 2013 that would allow states to require out-of-state businesses to collect their sales taxes if the states simplified their sales tax laws.

Similar legislation was introduced last year with bipartisan support, but the effort has stalled in Congress because House Judiciary Committee Chairman Bob Goodlatte (R-Va.) has wanted to take a different approach on the issue.

The online folks want to not collect tax, brick and mortar places want online tax, local communities are interested in the extra revenue tax brings with it and many are concerned about the complication of asking businesses to comply with multiple state tax policies.

This entry was posted in economic development, Policy by Ann Treacy. Bookmark the permalink.

About Ann Treacy

I have a Master’s Degree in Library and Information Science. I have been interested or involved in providing access to information through the Internet since 1994, when I worked for Minnesota’s first Internet service provider. I am pleased to be a part of the Blandin on Broadband Team. I also work with MN Coalition on Government Information, Minnesota Rural Partners, and the American Society for Information Science and Technology.

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