Supreme Court rules that internet sales can be taxed by states

Pool  Getty Images

Strategic Resource Group's Burt Flickinger on the Supreme Court ruling that states can collect sales tax on out-of-state purchases.

The Supreme Court on Thursday reversed course on a ruling that dates to the mail-order catalogue era known as Quill that limited states to collect sales taxes only from retailers that have a physical presence, or "nexus", in a particular state to require that company to collect sales taxes from its customers.

"Rejecting the physical presence rule is necessary to ensure that artificial competitive advantages are not created by this Court's precedents", the Supreme Court decision said.

"The Internet's prevalence and power have changed the dynamics of the national economy", the court said in its decision in the case, South Dakota v. Wayfair. North Dakota, that states could not extend their taxing authority to companies that had no stores, warehouses or "physical presence" within the state.

More news: Eid to be celebrated across India on Saturday, today in Kerala

Customers were generally supposed to pay the tax to the state themselves if they don't get charged it, but the vast majority didn't. The case challenges South Dakota's application of its sales tax to internet retailers who sell into South Dakota but have no property or employees in the state. It also provides sellers access to sales tax administration software paid for by the State. Louisiana is beefing up its efforts to collect taxes on purchases made from out-of-state in...

South Dakota is leading the legal charge, passing a law requiring the collection of sales tax on Internet vendors with at least 200 yearly transactions or $100,000 in sales to its residents. Chief Justice John Roberts joined Stephen Breyer, Sonia Sotomayor and Elena Kagan in the dissent.

Chicago was one of the first areas to impose a so-called Netflix tax but other states and towns have started to tax streaming and video services. That will open the door to more states passing laws similar to South Dakota's.

Three large retailers-Wayfair, Overstock and Newegg-do not, and South Dakota sued them for failing to collect taxes after the state's law went into effect.

Related News:

  • The burgeoning US-China trade war has entered a new phase

    The burgeoning US-China trade war has entered a new phase

    Months of tit-for-tat trade measures between Beijing and Washington have had a fairly limited impact on currencies up to now. USA stock markets are set for a sharply lower open as tensions over trade between the US and China seem closer to a boil.

    Bernd Leno gives awkward answer as he names three ex-players

    It is a big boost of confidence for the right-back, who has been a target for Juventus and Barcelona and Manchester United. Arsenal unveiled Leno just hours after the club revealed their new-look coaching team under Unai Emery .
    Michael Porter Jr. cancels workout, may still allow medical evaluations

    Michael Porter Jr. cancels workout, may still allow medical evaluations

    He could go as high as No. 2, but if these constant injuries become a problem them that could scare a lot of teams away from him. Porter dropping to the late lottery would be a noteworthy turn of events for a player rated so highly in his high school class.
  • Spain Overcomes Iran's Stubborn Defense in the World Cup

    Spain Overcomes Iran's Stubborn Defense in the World Cup

    Spain had to contend with more than just a well-drilled and fierce team of opponents - they were also playing against the crowd. David Silva sent a free kick straight into the arms of keeper Ali Beiranvand in the 25th minute for Spain's first shot on goal.

    Prince Louis’s Baptism Will Have a Deep Connection to Princess Diana

    George was also christened at the Chapel Royal, but Charlotte was baptised at the Church of St Mary Magdalene in Sandringham. The announcement comes days after speculation that his Christening would happen between of June and first weeks of July .
    Ruet-e-Hilal Committee meets today to sight Shawwal moon

    Ruet-e-Hilal Committee meets today to sight Shawwal moon

    In Ramzan, the 9th month of Islamic calendar , Muslims observe fast and abstain from food and water from dawn to dusk. King Salman also thanked Allah for having helped Saudi Arabia "remain adherent to Islamic Shariah law".
  • Deputies search for suspects in rapper XXXTentacion slaying

    Deputies search for suspects in rapper XXXTentacion slaying

    The victim was identified as XXXTentacion , whose birth name is Jahseh Onfroy, according to a tweet from the Sheriff's Office . Troubled rapper-singer XXXTentacion was shot and killed Monday in Florida in what police called an apparent robbery attempt.
    Iran expects OPEC to stick to supply limits

    Iran expects OPEC to stick to supply limits

    Meanwhile, the market was also weighing a surprise drop in U.S. crude stocks figures, which is typically bullish for the market. Another idea would see an immediate increase of 500,000 barrels, followed by a similar rise in the fourth quarter.
    SWOT Analysis of Afghanistan Test Team

    SWOT Analysis of Afghanistan Test Team

    Rahane became Rashid Khan's maiden Test scalp while Mujeeb ur Rahman got Pujara caught at leg-gully with one that spun in sharply. Now the country is producing world-beaters like 19-year-old spinner Rashid Khan . "We won't take them lightly", said Rahane.
  • First lady Melania Trump ‘hates’ to see families separated

    First lady Melania Trump ‘hates’ to see families separated

    Laura Bush said the ongoing policy at the border " breaks her heart " in an editorial published by The Washington Post . In a recent six-week period there were almost 2,000 family separations. "I live in a border state", Bush said.
    Brazil coach Tite adored for turning around national team

    Brazil coach Tite adored for turning around national team

    Three of the previous four defending World Cup champions failed to reach the knockout stages, France, Italy and Spain. Switzerland went on to beat Germany, Italy, Colombia and Nigeria and took the historic world title.
    Several feared dead after strong natural disaster  hits near Osaka in western Japan

    Several feared dead after strong natural disaster hits near Osaka in western Japan

    Prime Minister Shinzo Abe said the government was assessing damage and that its top priority was the safety of residents. A 5.9 magnitude quake rattled the city of Osaka, western Japan on Monday morning, leading to partial building collapses.


Most liked

Moscow beer shortage not impacting World Cup venues, Budweiser says
England bid for this year's tournament but lost out to Russian Federation , in spite of being one of the favourites. Former Fifa spokesman Thomas Renggli told AFP that Blatter would meet Putin on Wednesday.

Trump Signs Executive Order to Stop Family Separations at Border
Iran, which tends to seize any opportunity to criticize U.S. government policy, also spoke out against the separation of families. ORR has 100 sites scattered across 17 states , which means children can be on the other side of the country from their parents.

How the Dwight Howard-Timofey Mozgov trade could affect the Cleveland Cavaliers
The weird and unique story of this fallen star is one of the most intriguing in the National Basketball Association right now. For Brooklyn, this trade is not about getting Howard - it's about dumping Mozgov's $17 million salary for the 2019-20 season.

Xi Jinping, Kim Jong Un hold talks in Beijing
Kim told Xi he hoped to work with China and other parties to push the peace process, Chinese state television said. This is the third meeting between Xi and Kim since March as North Korea continues to seek global recognition.

Zendaya Stuns in Second Red-Hot Look at MTV Movie & TV Awards 2018!
Zendaya turned heads in a multi-tier, off-the-shoulder red tulle gown with gold heels and matching circular earrings. Black Panther won Movie of the Year at the awards, which were presented Saturday and broadcast Monday.

Another record! Second World Cup's quickest red card
Battling for every ball, Colombia captain Radamel Falcao earned the free-kick from which Juan Quintero equalised before half-time. The 2-1 victory over Colombia on Tuesday (Wednesday NZ Time ) was another surprising result in an unpredictable tournament.

Uruguay take nothing for granted against chastened Saudis
Uruguay got 14 shot attempts overall, four of which were on target and it overcame 12 fouls in what was a physical match. Russia , however, were in total control and added a third when Dyzuba, totally unmarked, headed in Golovin's cross.

The Russia Investigations: What The Justice IG Report Revealed
When asked to clarify his statement the interviewer was met with laughter from the Republican New Yorker. President Donald Trump speaks to reporters at the White House , Friday, June 15, 2018, in Washington.

Sri Lanka deny ball-tampering accusations, continue to play Test ‘under protest’
The West Indies were awarded five penalty runs and Sri Lanka eventually agreed to take to the pitch with the ball being changed. The charges had been laid by on-field umpires Aleem Dar and Ian Gould , and third umpire Richard Kettleborough on Saturday.

Technology saved France against Australia
Webb added: "We can rectify mistakes in real time and come to better outcomes and fairer results". At least, we. deserved to play a draw'.

Exiled Yemen president goes to UAE as port attack looms
The Saudi-led coalition has been criticized for its airstrikes killing civilians. The UN Security Council is scheduled to meet to discuss the offensive.

Ian Wright's brilliant reaction to Lionel Messi penalty miss
This match was, fairly or otherwise, seen by many as the likely winners versus fourth place and it has ended in a draw. A downcast Messi spoke of his disappointment at the penalty miss.

Team must vigorously pursue Kawhi Leonard at all costs
This is likely one of the betters deals they could get and Kawhi Leonard could join Ben Simmons and Joel Embiid in The Process. The tricky part here is that Leonard is still under contract with San Antonio .

Tiger Woods says he ‘absolutely’ will win a major again
Mickelson turned out to be the lone survivor, playing his final 15 holes Friday in 3 under to squeeze in under the cut. He picked up two of his birdies on the par 3s, an 8-iron to 8 feet on the scary 11th, and the long putt on No. 7.

No ‘Party Like A Russian’ for Robbie Williams at World Cup opening
Williams had been criticised in both Russian Federation and England before the event for agreeing to participate in the ceremony. British pop star Robbie Williams will be performing at the World Cup opening ceremony along with a series of musical acts.