By Bernie Koch
Kansas Economic Progress Council
June 21, 2018
The U.S. Supreme Court has ruled that states can collect sales tax from online retailers.
The ruling means billions of dollars for state governments across the country. It’s unclear if local governments have the same ability.
The ruling is a win for brick-and-mortar retailers. They have long argued that internet retailers have an unfair advantage because they don’t have to collect sales tax.
The decision comes in the case of South Dakota v. Wayfair, where over 40 states and the Trump Administration sought to have the Court overturn the 1992 decision in the case of North Dakota v. Quill. The Court agreed with the plaintiffs and that decision was overturned.
The ruling was a 5 to 4 by the justices.
What this will mean for the states of Kanas and Missouri is yet to be determined.