Online retailers Amazon.com and Overstock.com have been fighting against a recent U.S. Supreme Court decision that allows states to collect sales taxes from customers even in places where the companies do not have a physical presence.
Ed Ben, CPA, Director, SC&H Group, recently commented on the companies’ appeal to Expertise Beyond the Numbers.
This Monday during one of the busiest days for online retailers, to end the latest chapter on the ongoing nexus battles that started in 2008, the Supreme Court rejected Amazon.com and Overstock.com’s appeal of New York’s “click-through” nexus law. The Court’s action was taken without comment.
The rejection of Amazon and Overstock’s appeal puts the issue squarely back into Congress’s lap, who has the power to regulate interstate commerce. So far, Congress has done little over the years in regards to this issue. Currently, the Senate has passed the Market Place Fairness Act but the House has yet to hold hearings on the bill, where it’s future remains uncertain.
This ruling may likely embolden other states that have been sitting on the sidelines to jump into the fray and pass similar laws in hopes of grabbing some of the estimated $23 billion in lost sales tax revenues resulting from online shopping.
While this chapter may have ended, the saga will continue. We will keep you posted!