Reversal of the precedent would be a big win for brick-and-mortar businesses that for years have argued against the unfair advantages given to e-commerce businesses.
Twenty five years ago, SCOTUS ruled that states could not require out-of-state retailers to collect sales tax unless they had a physical presence in the state. But back in 1992, the dot-com boom had yet to hit, and merchants and consumers had not foreseen the impact that e-commerce would come to have on the industry. Today, with pure-play online merchants like Stitchfix and e-commerce marketplaces from the likes of Amazon dominating retail segments, Jackley said it’s time to modernize online sales tax rules — and he’s not alone.
For nearly a decade, retailers and trade organizations including the NRF and the Retail Industry Leaders Association, have lobbied Congress to pass legislation to end competitive advantages that the ruling inadvertently extended to e-commerce players.
The original case stems from a 2016 North Dakota state law requiring out-of-state merchants with annual in-state sales totaling more than $100,000 or 200 separate transactions to collect and remit sales tax, which was struck down by the state Supreme Court due to precedent.
For years, one of the biggest adversaries in the online sales fight was Amazon. But the e-commerce giant has been collecting sales tax for years now in most states, and as of April 1 2017 it began collecting in all remaining states with such levies. It is unclear when the justices will reach a decision.
https://www.retaildive.com/news/supreme-court-to-rule-whether-e-retailers-pay-state-sales-tax/514742/