Brick and Mortar Retail Scores Win in Supreme Court Battle with Ecommerce Shops
The state of the internet has fundamentally changed the face of nearly every industry—none moreso, arguably, than retail. The Supreme Court recognized as much and handed down a decision this week that gives brick and mortar stores the slightest bit of validation in their continued battle with ecommerce-only platforms.
As previously reported, the case South Dakota v. Wayfair asked the court to review a previous Supreme Court ruling from 1992 that outlined how states and other localities could tax goods sold outside of their borders. Initially intended to regulate the catalog-based retailer. The ruling has been challenged again and again over the years as retailers and states sought their fair shake against online-only shops.
The 1992 ruling allowed for the collection of sales tax by states and localities as long as the online seller had a physical presence within that specific state. Times and technology have very much changed since 1992, however, which is part of the reason the court opted to overturn that ruling this week.