SALT LAKE CITY — Utah Gov. Gary Herbert is praising a ruling by the U.S. Supreme Court on sales tax collection from online purchases.
The nation’s top court ruled on Thursday that states can collect sales taxes for purchases from businesses not within their borders. It’s been a long-running issue for Utah, which has claimed a loss of more than $200 million in sales tax revenue from online purchases by consumers.
“Gov. Herbert has long been a champion of updating our tax system to reflect the reality of the modern retail market. Today’s Supreme Court decision is an important and overdue update to our system,” Herbert spokesman Paul Edwards said in a statement to FOX 13. “The governor looks forward to working with members of the state legislature to decide how best to implement this change in the law in a way that is fair to the taxpayer, while respecting both brick and mortar businesses and e-retailers.”
Previous bills in the Utah State Legislature to require online retailers to collect sales taxes have failed under pushback from the public and taxpayer watchdog groups.
However, FOX 13 reported last month that the Utah Tax Commission has been quietly inking deals with a number of online retailers to get them to collect taxes. It’s a wide ranging list of companies ranging from Lyft to AirBnB and global mega-commerce sites Amazon and Alibaba.