The U.S. Supreme Court ruled on Thursday that states may collect sales tax on e-commerce transactions, even if the merchant has no physical presence in the state. This marks the end of the era of saving money on taxes through online shopping!
The U.S. Supreme Court granted states broad authority on Thursday to collect sales tax from online retailers, overturning legal precedents from the pre-internet era that exempted many merchants from collecting such taxes.
Justice Anthony Kennedy, writing for a 5-4 majority, ruled that states have the right to tax interstate sales by internet merchants, even if the merchant lacks a physical presence in the state.
This ruling may signal the end of an era in which consumers could save on taxes by purchasing goods online rather than from local merchants.
The justices' decision overturns a 1992 Supreme Court ruling regarding mail-order businesses, which held that states could only collect taxes from merchants with a physical presence within the state.
