WASHINGTON, D.C. (NBC News) – South Dakota’s Attorney General argued before the Supreme Court Tuesday that his state is losing millions in tax revenue from online giants and local stores are getting a bad deal.
Consumers spent more than $450 billion online last year, often without paying a sales tax.
“That small business on Main Street is losing its sales, that’s not fair, that’s not right and that should be not be constitutionality sanctioned,” said South Dakota Attorney General Marty Jackley.
The Supreme Court ruled in 1992 that retailers only have to collect sales taxes if they have a physical presence in the state.
More than 40 states just joined South Dakota in this case, arguing they lose billions each year.
Online retailer Wayfair’s lawyer argued there are more than 12,000 jurisdictions with different tax schemes, creating chaos for online companies.
The justices seemed reluctant to overturn the court’s previous decision and suggested Congress fix the problem.
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