In a 5-4 decision, the United States Supreme Court on Thursday, June 21st, ruled that states and local governments can require internet retailers to collect sales taxes, even if the online company has no physical presence like a factory or store, in the state.
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The National Association of Counties (NACo) and other leading organizations that represent state and local governments released the following statement regarding the high court's ruling in South Dakota versus Wayfair, which granted states that have implemented certain simplifications the authority to enforce their sales tax laws on remote sellers:
“State and local organizations applaud the U.S. Supreme Court’s decision recognizing that the 1992 Quill ruling put Main Street retailers at a competitive disadvantage to remote sellers and the efforts by states to simplify the sales tax collection process and giving those states remote sales tax collection authority. For 26 years Congress has failed to act and through the efforts of Justice Anthony Kennedy, the federal government has finally recognized the changing nature of commerce and state efforts to simplify the collection process.”