The National Retail Federation is poised for a possible announcement soon from the U.S. Supreme Court on a case involving whether online sellers must collect sales taxes.
This week, the federation reported that the court offered no update on Monday, the day it typically announces rulings. It further speculated that an announcement could come tomorrow or on one of the next two Mondays.
Earlier this year, the court heard oral arguments on a 2016 South Dakota law that requires online merchants with more than $100,000 in sales to state residents or 200 transactions with state residents to collect sales taxes. Many online sellers do not collect sales taxes as a result of a 1992 Supreme Court decision that online sellers can only be required to collect sales taxes in states where they have a physical presence such as a store, office or warehouse.
NRF and Washington Retail believe the 1992 court decision is outdated now that various software programs would allow online retailers to quickly determine how much sales taxes were owed across the nation. Associations such as WRA maintain that online sellers are getting an unfair price advantage and threatening the futures of traditional physical stores by electing not to collect sales taxes.
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