VIDEO: Supreme Court Rules States Can Collect Sales Tax On Internet Purchases

By  //  June 21, 2018

Supreme Court Rules 5-4

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(FOX NEWS) – Online shoppers could find costs going up after the Supreme Court did away Thursday with a decades-old precedent limiting the ability of states to collect sales tax on certain out-of-state Internet purchases.

The 5-4 ruling called the current rules “unsound and incorrect.”

Currently, businesses shipping a product to another state where it does not have a “physical presence” — a store, office or warehouse — are not forced to collect that state’s sales tax.

In giving a victory to the states, the high court said that rule is outdated.

“When the day-to-day functions of marketing and distribution in the modern economy are considered, it is all the more evident that the physical presence rule is artificial in its entirety,” Justice Anthony Kennedy wrote.

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