Supreme Court looking at case on local sales tax

Supreme Court looking at case on local sales tax
U.S. Supreme Court

BIRMINGHAM, AL (WBRC) - The Supreme Court is considering a case, if successful, would make it where consumers would have to pay full sales tax on all online purchases.

Right now, the basic rule is you only have to pay online sales tax to your local government if a company has a physical presence in your state.

State government officials have complained they are losing a substantial amount of money because of this.

"For small business, it means hey I've got a chance now because it means I can actually compete now with some of these online retailers," said Stephanie Yates, UAB associate professor of finance.

The justices heard arguments Tuesday. According to published reports, they appeared divided over the issue.

A ruling is expected in June.

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