On June 21st the U.S. Supreme Court ruled that states are allowed collect sales tax on remote Internet sales. This decision represents a significant victory for brick and mortar marine retailers.
Last year, the South Dakota Supreme Court ruled that a 2016 law requiring out-of-state internet retailers to collect sales tax violates a 1992 U.S. Supreme Court decision that said retailers are not required to collect sales tax in states where they do not have a physical presence. The state appealed the decision, and the Court reversed its 1992 decision today.
Prior to the decision some online retailers did not collect sales tax, creating a competitive disadvantage for traditional retailers, especially for higher priced marine parts and accessories.
You can learn more about e-fairness issues at www.efairness.org
If you have any questions about legislative issues, or something happening in your state, please contact Will Higgins.
