35 states and DC back bid to collect online sales taxes

the U.S. Supreme Court to review whether retailers can be required to collect sales taxes in states where they lack a physical presence. The case could have national implications for ecommerce.

South Dakota Attorney General Marty Jackley said in a statement Thursday that Colorado filed a friend- of-the- court brief supporting South Dakota’s petition to the high court. The state is seeking to overturn legal rulings issued mostly before the online shopping boom that hamstring officials who want to collect sales taxes from out-of-state retailers.

“South Dakota is leading the national fight to bring tax fairness for our local retailers and to help support main street businesses,” Jackley said.

The support includes neighboring Iowa, Minnesota, Nebraska, North Dakota and Wyoming. The other states are: Alabama, Arkansas, California, Connecticut, Florida, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Mississippi, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Utah, Vermont, Washington and Wisconsin.

The brief says the jurisdictions all rely on con- sumption taxes to fund essential government operations.

States have pushed Congress to address the issue without success, and one estimate put the loss to states at roughly $26 billion in 2015. South Dakota estimates it loses about $50 million annually to e-commerce.