The Wall Street Journal: Supreme Court to hear internet sales tax case

The U.S. Supreme Court said Friday it will consider an internet sales tax case.

The Supreme Court on Friday said it would consider whether states can broadly require online retailers to collect sales taxes even if they lack a physical presence in the state, a case that could have a major impact on online commerce.

The justices agreed to hear an appeal by the state of South Dakota, which has been pushing a test case with the goal of overturning past high-court precedent, dating from before the explosion of modern internet retailing, that limited state sales-tax collection.

The Supreme Court, in cases from 1967 and 1992 involving mail-order businesses, said states can require merchants to collect sales tax only if they are physically located in the state. The court said states would impermissibly burden interstate commerce if they required out-of-state retailers to collect sales tax.

An expanded version of this story is available at WSJ.com.

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