US top court to decide if online retailers must collect state sales tax

US top court to decide if online retailers must collect state sales tax

The U.S. Supreme Court on Friday agreed to decide whether to expand the ability of states to require online retailers to collect sales tax, taking up South Dakota's dispute with three e-commerce companies.

Traders wait for the Wayfair IPO on the floor of the New York Stock Exchange
Traders wait for the Wayfair IPO on the floor of the New York Stock Exchange October 2, 2014. REUTERS/Lucas Jackson

WASHINGTON: The U.S. Supreme Court on Friday agreed to decide whether to expand the ability of states to require online retailers to collect sales tax, taking up South Dakota's dispute with three e-commerce companies.

South Dakota, appealing a lower court decision that favored Wayfair Inc, Overstock.com Inc and Newegg Inc, is asking the justices to overturn a 1992 Supreme Court ruling that companies with no physical presence in a state are not required to collect a state sales tax on purchases.

(Reporting by Lawrence Hurley; Editing by Will Dunham)

Source: Reuters

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