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Overstock Expanding Physical Presence After Supreme Court Ruling

Overstock.com said it will begin expanding its physical and digital operations, including supply chain, marketing, and recruiting, into states in which tax nexus concerns previously prevented the company from having an on-the-ground presence.

Prior to a Supreme Court ruling in South Dakota v. Wayfair, announced last week, states could only compel e-tailers to collect sales taxes if they had a physical presence in a state. The ruling makes it easier for states to demand sales tax collection from e-tailers who do business in a state and, potentially, other jurisdictions within a state.

Overstock noted that it had voluntarily started the process to collect sales tax on purchases made by consumers from the more than 12,000 unique U.S. tax jurisdictions following the ruling, although details of its enforcement will be settled in lower courts.

Overstock asserted that it continues urging Congress to legislate a fair and equitable solution for sales tax law that takes into account the best interests of both consumers and entrepreneurs who might be deterred from operating by the burden incurred by sales tax collection.