Mar 7, 2018

White House urging SCOTUS to rule in favor of sales tax for online retailers

The Trump administration is pushing for online retailers to pay sales tax, which could be a step in leveling the playing field with their brick-and-mortar competitors.

That decision is ultimately up to the U.S. Supreme Court, but the White House made it known on March 5 which way it thinks the high court should rule in the case of South Dakota v. Wayfair, 17-494, reported Bloomberg.

If SCOTUS sides with the new South Dakota law, which says the state government can collect sales tax from large online retailers, it would mean overturning a 1992 ruling that states merchants don’t have to pay sales tax if they don’t have a physical presence in that location.

SCOTUS judges are expected to begin hearing arguments on the case on April 17.

As many as 35 other state governments have stated they support the South Dakota law, Bloomberg reported. The only states that do not collect sales tax are Alaska, Delaware, Montana, New Hampshire and Oregon.

The company that would be most effected by a change in internet sales tax policy would likely be Amazon, although the internet giant isn’t part of Wayfair’s lawsuit against South Dakota. Other companies listed on the lawsuit are Overstock.com and Newegg.