WASHINGTON (AP) — The Supreme Court has agreed to wade into the issue of sales tax collection on internet purchases in a case that could force people to pay more for some things and let states recoup what they say is billions in lost revenue.
Under previous Supreme Court rulings, when internet retailers don't have a physical presence in a state, they can't be forced to collect taxes on sales into that state.
In 2016, South Dakota lawmakers passed a law requiring out-of-state sellers like Overstock.com and Wayfair to collect and turn over sales tax to the state. The state's highest court struck down the law, citing previous Supreme Court decisions.
South Dakota, 35 other states and the District of Columbia had asked the Supreme Court to address the issue.