Within the last decade, online shopping has become as much of an everyday activity as visiting a physical brick and mortar store. Online shopping is estimated to account for 10.1% of all retail sales in 2017. That\u2019s up nearly one-and-a-half percent since 2016.<\/p>\n
Despite the rising figures, online retail is still relatively new. Both retailers and state governments struggle to address when a sale should be subject to sales tax. Let’s explore some of the reasons why.<\/p>\n
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The story behind this ongoing struggle dates back to the 1992 US Supreme Court decision in\u00a0Quill Corp. v. North Dakota<\/em>, where it was held that an out-of-state company had to have a\u00a0nexus<\/em>\u00a0or physical presence in a state before requiring the collection of sales tax by the state it exists within.<\/p>\n