With hints of future battles over state taxation of Internet sales, the U.S. Supreme Court on Tuesday handed a technical victory to retailers trying to stave off the tax collector.
Ruling in Direct Marketing Association v. Brohl, the court unanimously said businesses may go to federal court to challenge state laws seeking to collect taxes for in-state purchases from out-of-state Internet retailers. Retailers tend to favor federal courts for this kind of litigation, fearful of state court juries and judges who might be eager to tax nonresident companies.
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