Supreme Court Ruling Means Sales Tax Changes For Montana's Online Businesses


He also had supported Nebraska joining with 33 other states and the District of Columbia previous year in supporting South Dakota's case before the high court.

Officials say that a U.S. Supreme Court ruling that retailers must collect sales tax from buyers in other states could mean more than $200 million a year to IL.

The case, known as South Dakota vs. Wayfair, overturned a 1992 ruling made by the high court at a time when e-commerce made up a much less significant portion of the economy.

Already, South Carolina expects to collect about $346 million in sales taxes from online sales in 2017-18, according to an October analysis by the state's Revenue and Fiscal Affairs Office.

More than 40 states had asked the high court to overrule two decades-old Supreme Court decisions that limited the ability of states to put sales tax on many internet transactions.

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"Between targeted advertising and instant access to most consumers via any internet-enabled device, a business may be present in a state in a meaningful way without that presence being physical in the traditional sense of the term", Justice Anthony Kennedy wrote in his opinion. But some states, including Washington, have recently passed marketplace bills which force the company that provides the platform for sellers - such as Amazon, Etsy and, eBay - to collect sales tax rather than the asking the seller to do so. North Dakota, that states could not extend their taxing authority to companies that had no stores, warehouses or "physical presence" within the state.

The Supreme Court agreed to overturn those decisions in a 5-4 ruling. Attorney General Marty Jackley said it was a win for South Dakota and for "Main Street businesses across America that will now have a level playing field and tax fairness".

Roberts, in dissent, said e-commerce has exploded in the United States in part because there have been uniform rules.

Industry commentator, author and self-proclaimed retail prophet, Doug Stephens, used his Twitter account to say the decision "ironically, will make Amazon even more powerful and potentially kill smaller eCommerce players". When New York was added to the list of states, a Trump Store spokesperson told Business Insider the online retailer has "always, and will continue to collect, report, and remit sales taxes in jurisdictions where we have an obligation to do so". Amazon collects sales tax for products that it sells directly, but third-party vendors that sell goods on the site may not collect sales tax.

Under the ruling Thursday, states can pass laws requiring out-of-state sellers to collect the state's sales tax from customers and send it to the state.