USA court backs states over web sales tax


After the ruling was issued on Thursday, brick-and-mortar stocks rallied while online retailers fell.

Walmart also praised the Supreme Court for "closing a loophole" that "produced an uneven playing field for main street businesses".

Online shopping may soon be a little more expensive. Forty-five of the 50 states have sales taxes. "It's exciting to have it overturned, but it's disappointing to not have a law in place".

Liberal Ruth Bader Ginsburg joined four conservative justices in the majority in the ruling authored by Justice Anthony Kennedy, while conservative Chief Justice John Roberts joined the court's three other liberals in dissent. Nineteen of the 20 largest retailers are already collecting sales tax regardless of their physical presence in each state, according to briefs filed in the case as cited by The Washington Post.

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"There are nuances to every opinion", he said.

In turn, the US Government Accountability Office (GAO) said that sales taxes may generate $ 13 billion in revenues to local budgets. He said the legislation would be tailored to fit within the Supreme Court ruling.

The Supreme Court's 5-4 decision means that states can now pass laws requiring out-of-state sellers to collect the state's sales tax from customers and send it to the state.

Quill is a precedent that traditional retailers have sought to overturn for 20 years - because they believe it gives e-commerce sellers an unfair price advantage.

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The retailers refused to collect sales tax - citing a 1992 law that prohibited states from collecting sales tax from retailers that did not have a "physical presence" in their state, such as a store, warehouse or sales representatives. That's because they typically have a physical store in whatever state the purchase is being shipped to. "This ruling clears the way for a fair and level playing field where all retailers compete under the same sales tax rules whether they sell merchandise online, in-store or both".

He tweeted: "Big Supreme Court win on internet sales tax - about time!"

In anticipation of the ruling, IL lawmakers included language in budget bills passed last month to allow the state to begin collecting sales tax from a broader swath of online purchases. Etsy and eBay also leave it up to their individual sellers to collect taxes.

South Dakota passed a law in 2016 that would require out-of-state retailers to collect and remit sales tax similar to in-state retailers.

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The Illinois law takes effect on October 1, and it's built on legislation passed in South Dakota that is the focus of the recent Supreme Court decision.