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Supreme Court Rules 5-4 In South Dakota Vs. Wayfair, Inc.
Supreme Court Rules 5-4 In South Dakota Vs. Wayfair, Inc.
Associated Press Photo
June 21, 2018

Supreme Court Rules In Favor Of State In Sales Tax Suit

The Supreme Court ruled today that states can require online shoppers to pay state sales taxes. According to the Rapid City Journal, the suit was led by South Dakota, and over 40 states have joined to request a change in decades-old tax collection legislation regarding sales tax on online purchases.

The Justices ruled 5-4 in favor of the states, who, with the growth of online shopping, were concerned about losing out on billions of dollars in tax revenue annually under the previous Supreme Court decisions. In previous years, if a business was shipping goods to states where it did not have a physical presence, like a warehouse or an office, it was not required to collect that state's sales tax.

South Dakota had wanted out-of-state retailers to begin collecting the tax and sued several popular online retailers before the case was eventually brought before the Supreme Court.

Read more about taxation in the Black Hills Knowledge Network news archive.

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