State & Local Government Policy, Business and Technology

Supreme Court Prepares to Reconsider Limits on State, Local Tax Authority

Route Fifty: The U.S. Supreme Court this week will turn its attention to a case involving the power states have to capture taxes on internet sales, a long-simmering issue with implications for billions of dollars of state and local budget revenue.

Arguments are scheduled for Tuesday in the case, known as South Dakota v. Wayfair, Inc.

Wayfair sells home goods, like furniture and rugs, online. Two other online retailers, Overstock.com, Inc. and Newegg, Inc. are also involved in the proceedings. The legal dispute centers on a state law the South Dakota legislature passed in 2016 requiring out-of-state retailers that meet certain conditions to collect and pay sales taxes.

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