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10 states enact online sales tax collection laws Monday

Published October 1, 2018

(BRAIN) — Ten states will start collecting sales tax from out-of-state online retailers starting Monday, Oct. 1. The laws are in response to the South Dakota v. Wayfair case the U.S. Supreme Court decided in June, and they vary state by state. The new laws are in Alabama, Illinois, Indiana, Kentucky, Massachusetts, Minnesota, Michigan, North Dakota, Washington and Wisconsin. Connecticut and Iowa have passed laws that go into effect soon.

Thirty-two states have now passed statutes or regulations to require sales tax collection by remote sellers, according to Internet Retailer magazine. Congress also is considering several bills that would establish a framework for state collection schemes. 

"The roots of the battle over an online sales tax go back decades before the birth of the World Wide Web," said Zak Stambor, editor of Internet Retailer magazine. "While the Wayfair decision fundamentally alters the playing field, I'm not sure we're done with the fight over online sales tax."