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November 15, 2017 01:00 AM

ACA supports review of online sales tax prohibition

Tire Business Staff
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    WASHINGTON — The Auto Care Association (ACA) has joined nine other trade associations in signing an amicus brief supporting a petition before the U.S. Supreme Court to address the issue of states collecting sales tax on internet purchases.

    The brief echoes the sentiment of a petition filed by the attorney general for South Dakota requesting that the court overturn the 1992 Quill v. North Dakota decision, which prevents states from charging sales tax on products purchased over the internet if the seller does not have a nexus, or sufficient physical presence, in the state.

    The petition requests that the Supreme Court review a state Supreme Court decision, which denied the state the ability to enforce a 2016 law requiring state sales tax be collected on all internet sales.

    Among the concerns introduced in the associations' brief, most had to do with real-world impacts on brick-and-mortar retail businesses due to the competitive disadvantage brought on by having to charge sales tax while their online competition does not, according to the ACA.

    The practice of "showrooming," where consumers check out products in stores and then purchase the product over the internet due to lower prices, was highlighted as an ongoing concern. The brief further cites the significant investment in employee training and showroom displays, taken advantage of by the consumer prior to them choosing to buy online.

    The ACA has posted the full text of the brief on its website.

    The other trade associations that signed the brief are the American Lighting Association; American Supply Association; American Veterinary Medical Association; Home Furnishings Association; Jewelers of America; National Association of Electrical Distributors; National Association of College Stores; National Ski and Snowboard Retailers Association; and National Sporting Goods Association.

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