Boston Herald

Supreme Court takes online sales tax case

- — HERALD WIRE SERVICES

The Supreme Court agreed yesterday to wade into the issue of sales tax collection on internet purchases in a case that could force consumers to pay more for certain purchases and allow states to recoup what they say is billions in lost revenue annually.

Under previous Supreme Court rulings, when internet retailers don't have a physical presence in a state, they can't be forced to collect tax on sales in that state. Buyers who purchase from out-of-state retailers are generally supposed to pay the state taxes; few do.

A total of 36 states and the District of Columbia had asked the high court to revisit the issue, which doesn't affect Amazon. com because it collects state sales tax nationwide. Online retailers Overstock. com, home goods company Wayfair and electronic­s retailer Newegg are part of the case. The court will probably hear arguments in the case in April.

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