New online state sales tax collection laws are set to go into effect today in 10 states, according to a report from Internet Retailer. The statutes, which vary by state, allow states to require the collection of state sales tax from ecommerce sellers whether or not those businesses physically operate within a state’s borders.
The states with new online sales tax rules going into effect include Alabama, Illinois, Indiana, Kentucky, Massachusetts, Minnesota, Michigan, North Dakota, Washington, and Wisconsin. Similar laws are expected to go into effect in Connecticut and Iowa in the coming months. For now, the list of states that have passed statutes or regulations to require online sales tax collection has reached 32, according to Internet Retailer.
The new laws follow the decision by the U.S. Supreme Court in June to overturn a decades-old precedent that limited state sales tax collection to retailers who maintained a physical presence within a state. In the case South Dakota v. Wayfair the court was asked to review a 1992 ruling that outlined how states and other localities could tax goods sold outside of their borders. Initially intended to regulate the catalog-based retail industry, the ruling has been challenged again and again over the years as states sought to get their fair shake with e-commerce sales—and as brick and mortar stores sought to fight back against the growing threat of online-only shops.