Sales Tax Initiative

In strongly worded letters to the governors of New York and Virginia, ABA protested “providing massive subsidies of public funds and tax incentives” to one of the world’s largest corporations.

The diversity of the economic nexus laws, particularly in regard to threshold requirements, may have left businesses unclear about their state tax obligations. 

In June, the Supreme Court ruled that states can legally collect tax from remote retailers deemed to have “economic nexus.”

A new E-Fairness Timeline available on ABA’s Advocacy page shows the many ups and downs throughout the long fight to sales tax fairness in which independent booksellers played a leading role.

Last week, the U.S. Supreme Court ruled in favor of a South Dakota law qualifying remote retailers that have $100,000 or more in sales or 200-plus transactions in the state as having a physical presence.

In a major victory for sales tax fairness, the Supreme Court ruled in favor of South Dakota in a case that will redefine the legal obligation of online retailers regarding sales tax collection, South Dakota v. Wayfair, Overstock, and Newegg. 

The tax applies to companies that gross at least $20 million per year and will fund affordable housing and homeless services; since its proposal, Amazon — the city’s largest employer — has resisted the measure.

South Dakota v. Wayfair, Overstock, and Newegg addresses online retailers’ obligation to collect and remit sales tax and what constitutes a business’ physical presence in a state.