A South Dakota decision moves the online sales tax issue closer to the US Supreme Court
South Dakota’s Supreme Court affirms a lower court ruling against a state law designed to challenge the prevailing law that allows many online retailers to avoid collecting sales tax. Since the birth of e-commerce, online retailers have been shielded from the requirement to collect sales tax from consumers who live in those states where the retailer does not have a physical presence, such as an office, store or warehouse. The U.S. Supreme Court likely will soon have the chance to change that. The question of whether out-of-state online retailers can be required to collect sales tax moved a big step closer to the nation’s highest court today when the South Dakota Supreme Court upheld a lower court’s decision barring enforcement of a 2016 state law that requires larger e-retailers to collect sales tax from South Dakota residents and remit them to the state. Click Read More below for additional detail.