U.S. Supreme Court Rules States Can Ask Ecommerce Companies to Collect Sales Tax

Small-business owners could suffer

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In a 5-4 ruling, the U.S. Supreme Court decided that states can require ecommerce companies to collect sales tax, upending an industry and possibly pushing the issue towards Congress to ultimately resolve.

The ruling, in South Dakota v Wayfair, sided with South Dakota’s 2016 state law and overturned a previous 1992 decision in Quill Corporation v North Dakota, which did not let states ask companies without a physical location in the state to collect sales tax.

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