In a 5-4 decision on Thursday, June 21, the Supreme Court ruled that states can collect online sales tax—discarding the court’s longstanding rule that states cannot require companies without a physical presence to collect sales taxes. The decision reverses decades of history dealing with sales tax and retailers’ obligation to collect and remit tax when goods are sold across state lines. The Supreme Court’s ruling opens the door for states to impose an economic nexus standard when it comes to sales tax collection responsibilities.
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