Anthony Kennedy

Supreme Court will decide billion-dollar question for online sales: Can states collect sales taxes on all purchases?

Supreme Court will decide billion-dollar question for online sales: Can states collect sales taxes on all purchases?

The Supreme Court announced Friday that it will consider allowing states to require all online sellers to collect sales taxes, revoking an old rule that costs states billions in lost revenues.

The justices said they would hear an appeal from South Dakota and 35 other states that says the current “physical presence” rule is outdated and unfair in an era when Americans do much of their shopping online.

In 1992, when home shopping was dominated by mail-order catalogs, the high court ruled a state may require out-of-state companies to collect sales taxes only if the company had outlets or warehouses within the state. The justices said then that requiring companies to do more would...

EDITION: California | U.S. & World
53°