MONTGOMERY – On Thursday, Governor Kay Ivey released the following statement regarding the U.S. Supreme Court’s ruling in the case South Dakota v. Wayfair.
“Technology and the advent of e-commerce has drastically changed the retail landscape and the states’ ability to collect sales taxes. The Supreme Court’s ruling related to online sales taxes is a common-sense approach that modernizes existing limitations on the taxation of e-commerce sales and will facilitate collections in our global, technology-driven economy. The change effected by the Court’s decision will promote parity between our state’s brick and mortar businesses and competing out-of-state sellers.”
THE RULING:
On Tursday, June 21 the U.S. Supreme Court ruled that states have broad authority to force online retailers to collect potentially billions of dollars worth of sales taxes siding with South Dakota in its high-profile fight with e-commerce companies.
The justices, in a 5-4 ruling against Wayfair Inc, Overstock.com Inc and Newegg Inc, overturned a 1992 Supreme Court precedent that had barred states from requiring businesses with no “physical presence” in that state, like out-of-state online retailers, to collect sales taxes.
