Time to bring back mom and pop shops?
Supreme Court rules states can require online sellers to collect sales tax
The Supreme Court on Thursday upheld a South Dakota law requiring certain out-of-state retailers to collect its sales tax.
In a 5-4 ruling, the court overturned a 1992 court precedent barring states from requiring businesses that have no physical presence in the state to collect their sales taxes.
Delivering the opinion of the court, Justice Anthony Kennedy said the physical presence rule in that former case, known as Quill Corp. v. North Dakota, is unsound and incorrect.
Kennedy said Quill created a tax shelter for businesses that decide to limit their physical presence and still sell their goods and services to a state’s consumers—something, he said, that has become easier and more prevalent as technology has advanced.
“Worse still, the rule produces an incentive to avoid physical presence in multiple States,” he said. “Distortions caused by the desire of businesses to avoid tax collection mean that the market may currently lack storefronts, distribution points, and employment centers that otherwise would be efficient or desirable.”
http://thehill.com/policy/finance/393441-supreme-court-rules-for-south-dakota-in-online-sales-tax-case