Trump administration backs state collection of online sales tax

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The Trump administration on Monday urged the U.S. Supreme Court to allow state and local governments collect sales taxes from online retailers as the justices consider a pending case South Dakota seeks to overturn.

"In light of Internet retailers’ pervasive and continuous virtual presence in the States where their websites are accessible, the States have ample authority to require those retailers to collect state sales taxes owed by their customers."
— Solicitor General Noel Francisco in a brief to the court.

Why it matters: If it agrees, the court would roll back a 1992 ruling that prohibits states from mandating merchants to collect taxes unless they have a “physical presence" there.