Marketplace®
Every story is an economic story

Online shoppers have to pay state sales tax, Supreme Court says

States and cities have long been saying that they have a right to profit from residents’ on line purchases.

In a 5-to-4 decision in the case of South Dakota v. Wayfair, the Supreme Court majority ruled that South Dakota can require online retailers that do not have a physical presence in the state to collect state sales tax on purchases by state residents. The decision overturns an earlier 1992 Supreme Court decision that barred states from doing this — and over time, it’s likely to diminish or eliminate the financial advantage many online-only retailers have maintained over local brick-and-mortar stores, which are typically required to collect state and local sales taxes from customers. So what about the modern online American consumer, with ever more opportunities to shop and click? Will this decision likely impact how we shop?

Click the audio player above to hear the full story. 

Related Topics

Latest Episodes

View All Shows
  • Marketplace
    2 hours ago
    25:22
  • Marketplace Morning Report
    10 hours ago
    7:09
  • Million Bazillion
    15 hours ago
    30:57
  • Marketplace Tech
    15 hours ago
    12:45
  • This Is Uncomfortable
    6 days ago
    28:44
  • Make Me Smart
    4 months ago
    24:33