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The Supreme Court will decide whether to expand the power of the states to collect sales tax from online sales, which could precipitate a vast increase in internet sales tax.
The justices announced Friday that they will take a challenge to a 1992 precedent which allows states to collect sales taxes only from those companies with a physical presence in their jurisdiction. As such, many states cannot collect sales taxes off of e-commerce behemoths like Amazon.
Case - Quill - V - North - Dakota
The 1992 case, Quill v. North Dakota, was occasioned when North Dakota attempted to collect a state use tax from the Quill Corporation, a mail-order office equipment company. In an 8-1 opinion, the Court concluded the state was interfering with interstate commerce, in violation of the so-called dormant commerce clause.
South Dakota, seeking new sources of revenue, set off a challenge to the Quill precedent in 2016 by adopting a 4.5 percent tax on all sales. Internet commerce platforms Wayfair, Overstock, and Newegg challenged the new tax in short order.
Skepticism - Quill - Sales - Members - Court
Skepticism of Quill grew with internet sales, even among members of the Court. Justice Anthony Kennedy wrote a concurring opinion in a 2015 case urging his colleagues to reconsider the ruling...
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