ACA Supports Decision Allowing States to Collect Online Sales Tax

June 22, 2018—The Auto Care Association (ACA) applauds yesterday’s decision by the Supreme Court to permit states to collect sales tax on purchases of products made over the Internet.

The 5-4 decision means that online sellers will now be on a level playing field with brick and mortar retailers regarding charging sales tax.

ACA had filed an amicus brief with other retail groups urging the Supreme Court to hear the case based on the price advantage that the current system provided online sellers.

The decision overturned a previous Supreme Court decision that required companies to have a physical presence in the state where the purchaser resided in order to charge sales tax.

“This is an important decision for many of Auto Care’s retail members and we are pleased that the Supreme Court saw the unfairness in the current system and determined to make everyone play by the same rules,” said Aaron Lowe, senior vice president, regulatory and government affairs, ACA. “We hope that implementation of the sales tax will be done uniformly across state lines to ensure a fair and efficient system of tax collection.”