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U.S. Top Court to Decide If Online Retailers Must Collect State Sales Tax

South Dakota wants to overturn a 1992 Supreme Court ruling that companies with no physical presence in a state are not required to collect a state sales tax on purchases.
Boxes at an e-commerce warehouse facility | Source: Shutterstock
By
  • Reuters

WASHINGTON D.C., United States — The U.S. Supreme Court on Friday agreed to decide whether to expand the ability of states to require online retailers to collect sales tax, taking up South Dakota's dispute with three e-commerce companies.

South Dakota, appealing a lower court decision that favored Wayfair Inc, Overstock.com Inc and Newegg Inc, is asking the justices to overturn a 1992 Supreme Court ruling that companies with no physical presence in a state are not required to collect a state sales tax on purchases.

By Lawrence Hurley; Editor: Will Dunham

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