11:27, June 21 136 0 abajournal.com

2018-06-21 11:27:11
Supreme Court clears way for states to collect sales tax from internet retailers

Developing: The U.S. Supreme Court on Thursday ruled that states may collect sales tax from internet retailers. Justice Anthony M. Kennedy wrote the majority opinion, joined by Justices Clarence Thomas, Ruth Bader Ginsburg, Samuel A. Alito Jr. and Neil Gorsuch. The case is South Dakota v. Wayfair.

The majority overruled a previous decision holding that the Constitution’s dormant commerce clause bars states from collecting sales taxes from retailers without a brick-and-mortar presence in the state. The previous decision was Quill Corp. v. North Dakota.

“Though Quill was wrong on its own terms when it was decided in 1992, since then the internet revolution has made its earlier error all the more egregious and harmful,” Kennedy wrote.

At issue in the case was the constitutionality of a South Dakota law that requires out-of-state retailers to pay sales taxes if they make at least 200 sales or at least $100,000 in sales.

Related article:

ABA Journal: “The high court weighs whether internet retailers must collect state sales taxes”