The Supreme Court on Thursday upheld a South Dakota law requiring certain out-of-state retailers, including those that operate remotely online, to collect its sales tax.
In a 5-4 ruling, the court overturned a 1992 court precedent barring states from requiring businesses that have no physical presence in the state to collect their sales taxes.
Delivering the opinion of the court, Justice Anthony Kennedy said the physical presence rule in that former case, known as Quill Corp. v. North Dakota, is unsound and incorrect.
Kennedy said Quill created a tax shelter for businesses that decide to limit their physical presence and still sell their goods and services to a state’s consumers — something, he said, that has become easier and more prevalent as technology has advanced...
Read more: Supreme Court rules states can require online sellers to collect sales tax