Supreme Court to hear online sales tax case

  • Supreme Court to hear online sales tax case

Supreme Court to hear online sales tax case

Justice Glen Severson wrote that the two U.S. Supreme Court decisions requiring a business to have a physical presence in the state to remit sales tax tied the justices' hands when it came to considering the new law.

The Supreme Court weighed in first in 1967, ruling that states can not force "catalog" retailers to collect sales taxes in states where they are not physically present.

The Supreme Court granted cert in South Dakota v. Wayfair, Inc. today, paving the way for a possible overturn of Quill Corp. v.

The states said that, according to one estimate, they'll lose out on $211 billion in tax revenue over the next five years if the Supreme Court's previous rulings stand.

NRF is the world's largest retail trade association, representing discount and department stores, home goods and specialty stores, Main Street merchants, grocers, wholesalers, chain restaurants and Internet retailers from the United States and more than 45 countries.

South Dakota is losing millions of dollars a year in uncollected sales taxes because of growing Internet sales.

And earlier this week, a federal court panel as politically tainted, sending that case headed toward the high court as well.

Texas' primary argument is that its 2013 maps are shielded from review because they were drawn by a court - even if they were drawn under rushed circumstances, and even if they did, in many respects, use the state-drawn 2011 maps as a template. The court didn't set a hearing date for oral arguments, but court observers say it likely will be in April with a decision coming by late June, when the court's term ends.

By taking on a law passed by South Dakota's legislature for the express objective of testing its legality, the court will return to an issue it addressed 25 and 50 years ago, before consumers did almost 10% of their shopping on the internet.

South Dakota's law places the burden of collecting and remitting sales taxes on companies that do at least $100,000 in sales or handle at least 200 transactions in the state.

Even so, Gilberto Hinojosa, chairman of the state Democratic Party, praised the Supreme Court's action, saying it shined a light on a Republican "pattern of discriminating against Texans of color". The high court a year ago heard arguments in a Wisconsin case over the limits of partisan gerrymandering and whether extreme practices can be deemed unconstitutional.

The U.S. Supreme Court agreed Friday to take up the state of Washington's challenge to a Ninth Circuit decision ordering the state to replace hundreds of culverts to protect tribal salmon fishing rights.

But online retailers that asked the court to stay out of the Internet sales battles disagreed.

Part of the law created to assure a court test of the state's new tax gave the state permission to sue out-of-state retailers who failed to collect and pay.

On Friday, the federation's president and CEO, Matthew Shay, said, "Retail is a dynamic industry that's rapidly transforming". Systemax agreed to collect the tax, while the other companies contested the state law.