Supreme Court Passes on Amazon Tax Case3 Dec, 2013 By: Chris Tribbey
The Supreme Court has passed on an appeal by Amazon and Overstock to hear an appeal of a New York court decision that forces the online retailers to collect sales tax from customers in the state.
The decision paves the way for other states to also require online retailers to collect sales tax from consumers, even if the retailer doesn’t have a physical presence in the state.
“Today’s Supreme Court decision validates New York’s efforts to treat both online and brick-and-mortar retailers equally and fairly, by requiring all retailers with a presence in our state to collect sales taxes,” said New York Attorney General Eric Schneiderman, according to an Associated Press report.
Amazon currently collects taxes sold to consumers in Arizona, California, Connecticut, Georgia, Kansas, Kentucky, Massachusetts, New Jersey, New York, North Dakota, Pennsylvania, Texas, Virginia, Washington, West Virginia and Wisconsin.
Passed by the U.S. Senate and awaiting consideration by the House is the Marketplace Fairness Act, which would end the physical presence requirement for sales taxes. The bill would exempt sellers who make less than $1 million per year in online sales.