US Supreme Court to revisit ruling on Internet sales tax
The Supreme Court of the United States will revisit a tax ruling from 1992, which was responsible for making the Internet a largely ‘tax-free zone’ in the USA, claiming that retailers should only be subject to taxation in states where they have a ‘physical presence’. The Supreme Court justices now announced that they will reconsider the case, as the 1992 ruling might be obsolete in the context of today’s ‘e-commerce era’. Those supporting the 1992 ruling fear that this will affect small and medium-size companies in their ease of conducting business online. Yet, proponents of the online sales tax claim that it will level the playing field with ‘offline’ businesses, and that it will ‘reflect the realities of 21st century commerce‘. The court is likely to hear arguments in April, and provide a ruling in late June.