December 2, 2013 Last Updated 12:19 pm

U.S. Supreme Courts declines to hear online sales tax case

New York Court of Appeals ruling in and NY State Department of Taxation stands: online retailers must collect sales tax

The U.S. Supreme Court today declined to hear an appeal concerning the issue of online sales tax, letting stand a ruling by the New York Court of Appeals. The case, Inc. and the New York State Department of Taxation and Finance, forces online retailers to collect state sales tax because the companies involved have relationships with third party affiliates within the state.

The decision comes on Cyber Monday, the biggest day of the year for online retailing. Over 130 million Americans are expected to shop online for holiday gifts.

Many retailers opened their doors on Thanksgiving Day itself, but so far revenue numbers appear to be a disappointment. If is possible that the early start to holiday shopping convinced many that there would not be good deals to be had on Black Friday, the traditional start to the holiday shopping season.

The Washington Post: Supreme Court declines case on making online retailers collect sales taxes
NY Court of Appeals: Inc. v. New York State Department of Taxation and Finance (PDF)

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