The National Retail Federation (NRF) has hailed the US Supreme Court’s decision to review the 1992 South Dakota case if online sellers can collect sales tax same as the local stores do.
NRF is a retail trade association, which representing business entities in the US and more than 45 countries.
NRF also insisted that Congress needs to address the issue through federal legislation.
Last November, NRF filed a friend-of-the-court brief, where it appealed to the Supreme Court to take up the case brought up by the state of South Dakota.
In its filing, NRF said that the 1992 Quill Corp. versus North Dakota decision is outdated.
In Quill, the court stated the tax laws implemented across various states in the country were too complicated for retailers to know how much tax to collect for its products unless they are physically present in the customer’s state.
NRF president and CEO Matthew Shay said: “Retail is a dynamic industry that’s rapidly transforming. Unfortunately, antiquated sales tax collection rules have resulted in an uneven playing field that’s making it harder for Main Street retailers to compete in today’s digital economy.
“This is a basic question about fairness, which all of our members deserve whether they’re selling in stores or online.
“The fact that the Supreme Court has decided to reconsider its outdated ruling is encouraging, and we are hopeful it will lead to a positive outcome that reflects the realities of 21st century commerce.”
NRF noted that it will continue to support the Remote Transactions Parity Act, which would allow states to require out-of-state sellers to collect sales tax.