Jewelers Cheer Online-Sales-Tax Ruling
RAPAPORT... US states can now collect sales taxes from online retailers,the nation's Supreme Court has ruled.The court overturned a 1992 decision that exempted companiesfrom the duty if they didn't have a physical presence in the state. Traditionalretailers largely considered that status quo unfair, as, they claimed, it gavee-commerce players a competitive advantage. Five out of nine Supreme Courtjustices voted in favor of the change Thursday. "This historic decision from the court insupport of sales-tax fairness is a major victory for the jewelry industry,providing a clear path to level the playing field between traditional andonline retailers," said David Bonaparte, CEO of Jewelers of America. Congress must now pass federal legislationthat lays out the rules for collecting sales tax, the jewelry tradeorganization, which has long campaigned for the reform, added.
Big Supreme Court win on internet sales tax - about time! Big victory for fairness and for our country. Great victory for consumers and retailers.
- Donald J. Trump (@realDonaldTrump) June 21, 2018The case, South Dakota v. Wayfair, arose after South Dakota enacteda law requiring out-of-state sellers to charge customers sales tax as if theretailers had a physical presence in the state. South Dakota sued certainonline retailers that, it claimed, should be paying the duty, as they met theact's requirements of at least $100,000 in annual sales to - or 200transactions with - South Dakota residents. The e-tailers then claimed the state's law wasunconstitutional. They were successful in state courts, which relied on the1992 precedent of Quill Corp. v. North Dakota. However, the Supreme Court hasnow overturned Quill. Shares in Overstock, one of the US's largest onlineretailers, fell 7% Thursday following the ruling. Amazon stock dropped 1.1%during the day.