Reuters: Supreme Court uncertain on e-commerce tax decision

|By:, SA News Editor

U.S. Supreme Court justices appear undecided on whether states should force out-of-state e-commerce companies to collect sales taxes.

The case in question relates to South Dakota’s desire to overturn a 1992 Supreme Court precedent saying states can’t require retailers to collect state sales taxes if the business isn’t physically present in the state. 

Reuters says several justices would prefer for Congress to pass a law that settles the issue on a national basis. 

South Dakota is appealing a lower court ruling that favored Wayfair (W +5.7%), (OSTK +1.8%), and Newegg. The state passed its own law in 2016 that requires online retailers to collect taxes if total sales cross $100K or 200 separate transactions. 

President Donald Trump recently went on several Twitter rants about Amazon’s (AMZN +2.7%) failure to collect state sales taxes and not paying fair rates to the postal service.  

Previously: Trump economic adviser comments on Amazon and "level playing field" (April 4)

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