The U.S. Supreme Court recently decided to hear a case brought by South Dakota seeking to change how sale tax is collected on purchases made online.
Marty Jackley, South Dakota attorney general, filed the petition asking the Supreme Court to review Quill v. North Dakota, a 1992 decision that prevented states from collecting sales tax on internet purchases. The decision prevents the state from enforcing a 2016 South Dakota law that requires state sales tax be collected on all internet sales.
Ten trade organizations, including the Auto Care Association, signed an amicus brief supporting the petition. The organizations said the decision negatively affects brick-and-mortar businesses by putting them at a competitive disadvantage.
The brief also mentioned showrooming, the practice of viewing a product in store then purchasing it online to receive a lower price.
“The Auto Care Association is pleased that the court has taken this important step and we stand ready to assist petitioners in demonstrating to the court why it is critical that the Quill decision be overturned such that fairness can be returned to the marketplace,” Aaron Lowe, Auto Care Association senior vice president of regulatory and government affairs, said.