TechCrunch: States will be able to charge sales tax on online purchases thanks to the Supreme Court

In a Supreme Court ruling announced today, states can make online businesses collect sales tax even if they do not have a presence in that state. According to TechCrunch, the ruling overturns a 1992 decision that said a company must have a physical presence in the state in order to be required to pay taxes.

Brick and mortar stores are thrilled with the ruling because online retailers like Amazon and eBay will now be required to pay local sales tax. Local governments will see an estimated $9 billion to $13 billion tax revenue.

Some questions still remain. The court did not rule out states retroactively seeking sales tax or states opting not to collect tax on all online purchases. New online companies may be the most impacted by this ruling, adding a new barrier to scaling their business.

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