The Supreme Court will not weigh in on the online sales tax debate; this week it refused to hear the constitutional challenge by Amazon and OverStock.com, instead leaving it to the states to decide. Residents in New York, California, and 15 other states will continue to pay sales tax on online purchases, and lawmakers in D.C. want to cement a permanent solution to the perceived advantage that online businesses have over traditional retail companies when it comes to collecting state taxes.
Though Amazon and Overstock.com filed a constitutional challenge to states collecting sales tax on online purchases, for now it looks as if the battle will be waged state-by-state. Earlier this year a bill passed in the Senate that made it easier for states to collect online sales tax, but the legislation was halted in the House due to pressure from online retailers and disapproval from conservatives.
No doubt lawmakers will revisit this topic again, and states will continue to find ways to collect sales taxes from consumers in their states.