Supreme Court bails on online sales tax issue

The Supreme Court has refused to get involved in a dispute over state sales taxes for stuff bought on Web sites like Amazon.com.

MGN Online

WASHINGTON (AP) - One expert says this "might be the last Cyber Monday without sales tax."

The Supreme Court has refused to get involved in a dispute over state sales taxes for stuff bought on Web sites like Amazon.com.

The justices turned aside appeals from Amazon.com and Overstock.com in their fight against a New York court decision that forces them to remit sales tax the same way in-state businesses do.

One of the attractions of online buying is that there are no state taxes. The decision of the high court will likely move more states to try to collect taxes on Internet sales.

Joseph Henchman of the Tax Foundation says by this time next year, all online sales will be subject to state taxes.


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