The US Supreme Court has cleared the way for sales taxes of more online purchases. A decision that many including CBA and the Retail Trade Association believe will help states and level the playing field between online retailers like Amazon and brick and mortar stores.
The justices broke with 50 years worth of legal rulings that barred states from imposing sales taxes on most purchases their residents make from out of state retailers.
More than 40 states had asked the high court to override two rulings that prevented the tax collection arguing the law gave retailers like Amazon a financial advantage over stores located in each state and was costing billions of dollars in lost revenues annually.
CBA has been a proponent of changing the law to help level the playing field between online retail giants like Amazon and local Christian book stores. A two decade old fight for sales tax fairness.
CBA President Curtis Riskey said in an interview with CBA News, “Today’s decision is a major victory for our CBA member stores and indie retailers throughout the country.”
Judge Anthony Kennedy wrote that the courts previous decisions were flawed.
“Each year the physical presence rule becomes further removed from economic reality and results in significant revenue losses to the States. These critiques underscore that the physical presence rule, both as first formulated and as applied today, is an incorrect interpretation of the Commerce Clause,” he wrote in an opinion joined by Justices Clarence Thomas, Ruth Bader Ginsburg, Samuel Alito and Neil Gorsuch.