PublishedJune 21, 2018

Supreme Court Opens Floodgates to Internet Extraterritorial Taxation in 5-4 Vote

Washington — The Supreme Court has issued a ruling permitting states to tax e-commerce providers outside their own borders.

The case, pitting South Dakota against Wayfair, Overstock.com, and Newegg, was a closely watched dispute over whether these companies would have to collect taxes based on the hundreds of jurisdictions where their customers might live. While online stores already pay taxes in states where they have a physical presence, South Dakota and other states have sought to assess sales taxes based on where goods are sent.

The Computer & Communications Industry Association filed an amicus brief which argued that allowing states “to engage in extraterritorial taxation would burden internet services, and the startups and small businesses that rely on them.” The following can be attributed to CCIA President & CEO Ed Black:

“Today’s decision promises to subject small businesses reliant on e-commerce to new and burdensome tax obligations in states across the nation. As we approach the celebration of our nation’s independence, we should recall that taxation by a remote government was an injustice that animated the founding of our nation.”

“CCIA has serious concerns about the future implications for e-commerce if governments are empowered to tax those who reside beyond their borders.”

  • Press Releases

CCIA Submits Comments On Colorado Privacy Rules

Washington – The Computer & Communications Industry Association offered further testimony and comments this week in response to the Colorado Department of Law request for input on implementing t...
  • Press Releases

CCIA Submits PTO Comments on Examination Improvements, Eligibility for Attorneys

Washington – The Computer & Communications Industry Association filed comments with the U.S. Patent and Trademark Office this week on three different issues. CCIA submitted responses to question...
  • Press Releases
  • EU

Political Advertising: EU Parliament Vote Still Leaves Much Unclear About New Rules

Brussels, BELGIUM – Moments ago, the European Parliament adopted its position on the proposed new EU rules for the transparency and targeting of political advertising (TTPA). Together with the Counc...