U.S. Supreme Court to Review Bid to Collect Internet Sales Tax
The U.S. Supreme Court will consider freeing state and local governments to collect billions of dollars in sales taxes from online retailers, agreeing to revisit a 26-year-old ruling that has made much of the internet a tax-free zone.
Heeding calls from traditional retailers and dozens of states, the justices said theyll hear South Dakotas contention that the 1992 ruling is obsolete in the e-commerce era and should be overturned.
The high courts 1992 Quill v. North Dakota ruling, which involved a mail-order company, said retailers can be forced to collect taxes only in states where the company has a physical presence. The court invoked the so-called dormant commerce clause, a judge-created legal doctrine that bars states from interfering with interstate commerce unless authorized by Congress.
https://www.bloomberg.com/news/articles/2018-01-12/bid-to-collect-internet-sales-tax-gets-u-s-high-court-review