The Supreme Court has cleared the way for states to collect sales taxes from online retailers.
The 5-4 ruling overturns previous decisions from the High Court that exempted internet retailers with no physical presence in the state from collecting taxes.
The case stemmed from a law passed by the state of South Dakota in 2016, which required all online retailers to collect sales tax for purchases made in the state. South Dakota then took several out-of-state online retailers -- Wayfair, Overstock.com, and Newegg -- to court over the law.
The decision is a big win for states -- as well as for brick-and-mortar business that have long claimed that the lack of a sales tax on online purchases create an uneven playing field. And besides big online retailers like Amazon and Overstock.com, today’s decision also impacts small businesses that sell online.
Libby talks with Brent Kendall from the Wall Street Journal about today’s decision, as well as looking forward to major decisions from the Supreme Court for the remainder of the term, which ends next week.
With guest host Libby Denkmann
Richard Wolf, Supreme Court correspondent for USA Today