Supreme Court Says States Can Tax Online Sales

Supreme Court Says States Can Tax Online Sales

Assessment

Interactive Video

Business, Social Studies

University

Hard

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The Supreme Court ruled 5-4 that states can require Internet sellers to collect sales taxes, overturning the old physical presence rule. This decision impacts online retailers like Amazon, Wayfair, and Overstock, who must now comply with state tax laws. The ruling raises questions about retroactive taxation and minimal sales thresholds, which may require Congressional intervention. Amazon already collects taxes on direct sales but faces changes in its marketplace operations.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

How might Amazon's approach to sales tax collection differ from other retailers after the ruling?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What implications does the ruling have for retailers like Wayfair and Overstock?

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