mo4ch:>US court backs states over web sales tax
US court backs states over web sales tax
21 June 2018
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The top court in the US has ruled that states can force online companies to collect sales tax from their customers.Previously, companies without a physical presence in a state were exempt from sales tax collection requirements.The Supreme Court said the physical presence rule was "unsound and incorrect".The 5-4 decision is expected to help states collect billions more in revenue each year.The ruling stems from a dispute between three online retailers and the state of South Dakota, which passed a law in 2016 that required firms doing a certain amount of business in the state to collect sales tax from customers.
The Supreme Court rejected a challenge to that law, overturning a 1992 Supreme Court decision that established the physical presence requirement.Justice Anthony Kennedy wrote that the rule "each year... becomes further removed from economic reality and results in significant revenue loss…
21 June 2018
Image copyright
Getty Images
The top court in the US has ruled that states can force online companies to collect sales tax from their customers.Previously, companies without a physical presence in a state were exempt from sales tax collection requirements.The Supreme Court said the physical presence rule was "unsound and incorrect".The 5-4 decision is expected to help states collect billions more in revenue each year.The ruling stems from a dispute between three online retailers and the state of South Dakota, which passed a law in 2016 that required firms doing a certain amount of business in the state to collect sales tax from customers.
The Supreme Court rejected a challenge to that law, overturning a 1992 Supreme Court decision that established the physical presence requirement.Justice Anthony Kennedy wrote that the rule "each year... becomes further removed from economic reality and results in significant revenue loss…