US Supreme Court will examine Texas redistricting

South Dakota Attorney General Marty Jackley on U.S. Supreme Court's decision to accept the state's case on online sales taxes 1/12/18. Video from the Attorney General's office

US Supreme Court takes up fight over Texas electoral districts

The top of U.S. Supreme Court building is lit at dusk in Washington, U.S., December 18, 2017.

The high court's decision in South Dakota v. Wayfair could overturn a 26-year-old legal precedent and dramatically shift the impact e-commerce plays in states such as South Dakota where no income tax is collected and much of state revenue is generated through a sales and use tax. Forty-five of the 50 states have a statewide sales tax.

On Friday, the federation's president and CEO, Matthew Shay, said, "Retail is a dynamic industry that's rapidly transforming".

"This is an encouraging step toward fairness in how sales taxes are collected by all retailers, whether or not they have a physical store", NSGA president and CEO Matt Carlson said in a statement Friday. The state needs its tax revenues because its state constitution requires that the state government budget be balanced.

While Congress has the constitutional authority to regulate interstate commerce, the House and Senate have not agreed on a law to regulate tax collections for online sales. North Dakota, was occasioned when North Dakota attempted to collect a state use tax from the Quill Corporation, a mail-order office equipment company.

"These taxes fund education, public safety and the innumerable services that state governments provide", said Deb Peters, a Republican South Dakota state senator involved in the issue.

The Associated Press contributed to this article.

The justices also said they will review several legislative districts in Texas to decide whether they were drawn to dilute the voting power of Latinos.

Hoping to reverse this decision, in 2016 South Dakota's state legislature passed a law imposing out-of-state merchants to remit sales tax for items purchased by South Dakota customers. Instead, Texas asked the Supreme Court to put the rulings on hold until justices could review the ruling's merits.

Similar legislation was introduced previous year with bipartisan support, but the effort has stalled in Congress because House Judiciary Committee Chairman Bob GoodlatteRobert (Bob) William GoodlatteRosenstein to testify before House Judiciary Committee next week Conservative pressure on Sessions grows Clock ticking down on NSA surveillance powers MORE (R-Va.) has wanted to take a different approach on the issue.

"Given these changes in technology and consumer sophistication, it is unwise to delay any longer a reconsideration of the court's holding in Quill", Kennedy wrote. The state then sued three online retailers that refused to obey: Wayfair Inc.,, Inc., and Newegg, Inc. Systemax agreed to collect the tax, while the other companies contested the state law.

The Supreme Court announced on Friday that it will hear two cases, both titled Abbott v. Perez, which claim that Texas' congressional and state legislative districts were drawn to dilute Hispanic voters' influence.

In its brief to the Supreme Court, the National Retail Federation said that software is now widely available that makes it easy for retailers to collect sales tax.

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