Internet Tax Ruling Worth Billions Poised for Supreme Court Review
- State’s highest court backs challenge to online sales-tax law
- Tax issue a hot potato for Amazon, other online retailers
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The South Dakota Supreme Court brought the question of whether online retailers should pay sales tax back into sharp focus.
The Mount Rushmore state’s highest court ruled Thursday that companies selling wares over the Internet can’t be forced to collect South Dakota’s 4.5 percent tax on purchases, laying the groundwork for a U.S. Supreme Court appeal that could change law across the country. A decision forcing online retailers to collect such taxes could be worth billions in revenue to state and local governments.