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Communities Await Supreme Court Internet Sales Tax Ruling

The U.S Supreme Court recently heard arguments on whether companies that do business online be forced to collect sales taxes based on sales directed to states where they do not have a brick and mortar location.

Brinson Askew Berry partner Andy Davis played a lead role in a successful court case that required online hotel room brokers to remit hotel/motel taxes. Anderson told the Rome New Tribune he believes it is only fair for the online retailers who are selling the same items as the mom and pop stores on Broad Street to be forced to collect the same local taxes. Since the online hotel decision was rendered, Rome has been receiving an average of close to $6,500 annually in additional hotel/motel taxes.

Davis also said he believes there is some legitimacy to the argument that local communities deserve to get the tax revenue, because it's the local communications network that facilitated the sale in the first place and local road infrastructure that allows the items to be delivered to the end customer.

A decision is expected by the end of June. There is no question the ruling will have an impact all over the country.

Rome New-Tribune Article