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When selling its own inventory, Amazon charges sales tax in states that impose one, but about half of its sales involve goods owned by third-party merchants. For those items, the company says it’s up to the sellers to collect any taxes, and many don’t. Chief Justice John Roberts said Amazon’s tax collection efforts might be a reason not to disturb the Quill rule. He pointed to briefs filed in the case suggesting that the problem of uncollected taxes has "peaked." "E-commerce is expanding, and companies like Amazon account for a large part of that," Roberts said. "But they’re already collecting in all 50 states." South Dakota is urging the court to ditch the "physical presence" rule and let sales taxes be imposed on any company with an "economic presence" in a state. South Dakota’s law would require retailers with more than $100,000 in annual sales in the state to pay a 4.5 percent tax on purchases. Justice Samuel Alito said other states, if allowed, would be more aggressive. He raised the prospect that some would try to impose retroactive liability on retailers. South Dakota’s tax law applies only prospectively.
For the original version including any supplementary images or video, visit https://www.bloomberg.com/news/articles/2018-04-17/supreme-court-justices-signal-divide-on-internet-sales-taxes
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