A 20-year-old Supreme Court case is causing confusion over online sales taxes. It’s time for Congress to apply a modern solution.
Small business owners have tried to coax Congress into adopting fairer rules for online taxes with only incremental progress. But federal lawmakers may finally get busy after receiving an elbow jab delivered this week from beneath a black robe.
The U.S. Supreme Court declined to hear challenges to a New York law that requires online retailers to collect sales taxes just as their bricks and mortar brethren do. The court’s refusal to swat down the law, in an announcement released on Cyber Monday, is likely to encourage other states to adopt similar measures. Indeed, Virginia legislators have already passed a law signaling support for the policy change and designating any additional revenues for public schools and transportation projects.