Online Sales Tax Law

Online Sales Tax Law refers to regulations that require online retailers to collect sales tax on purchases made by customers in different states. Traditionally, only businesses with a physical presence in a state were obligated to collect sales tax. However, following a 2018 Supreme Court decision (South Dakota v. Wayfair, Inc.), states can now mandate that online sellers collect and remit sales tax even if they lack a physical store in that state. This aims to level the playing field between online and brick-and-mortar businesses, ensuring that all sales are taxed fairly.