Maryland Reporter – Md. retailers want online merchants to charge sales tax
P.J. Hogan testifying for NetChoice, a national trade association that promotes e-commerce, said Maryland might have difficulty collecting the tax from remote sellers based on lawsuits in other states where online retailers have relied on a 25-year-old Supreme Court ruling to avoid collecting sales taxes.
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Hogan said a similar law to the proposed bill passed in South Dakota a year ago and was recently struck down on Monday in the South Dakota Supreme Court as unconstitutional, based on the Quill decision.
Hogan said the Maryland Attorney General has opined that the law would wind up in litigation unless the Quill decision is overturned or Congress passes legislation allowing for the collection of a sales tax–without the requirement of a physical presence in the state.