1
00:00:00,040 --> 00:00:02,360
Speaker 1: But now it's time for our daily Bloomberg Law of Reef,

2
00:00:02,440 --> 00:00:05,440
Speaker 1: exploring legal issues in the news, and Today, Bloomberg Law

3
00:00:05,480 --> 00:00:08,760
Speaker 1: host dooom Brasso and Michael Best discuss the Supreme Court's

4
00:00:08,840 --> 00:00:11,280
Speaker 1: decision to leave intact a law that could affect how

5
00:00:11,320 --> 00:00:15,000
Speaker 1: we pay taxes when making purchases on the internet. They

6
00:00:15,000 --> 00:00:18,040
Speaker 1: speak with Steve Sanders, a professor at Indiana University Marrow

7
00:00:18,079 --> 00:00:21,079
Speaker 1: School of Law, and Greg Sture, a Bloomberg Supreme Court

8
00:00:21,120 --> 00:00:24,479
Speaker 1: reporter and co host of the Bloomberg Law Show. Greg,

9
00:00:24,560 --> 00:00:27,120
Speaker 1: let's start with the Court turning away an appeal by

10
00:00:27,160 --> 00:00:31,120
Speaker 1: a retail industry trade group over a Colorado law that

11
00:00:31,200 --> 00:00:36,000
Speaker 1: imposes reporting requirements on Internet retailers. What was the basis

12
00:00:36,080 --> 00:00:40,040
Speaker 1: of the trade group's challenge? Julus does potentially a really

13
00:00:40,080 --> 00:00:42,600
Speaker 1: big issue that probably the Court will take up. It

14
00:00:42,680 --> 00:00:46,160
Speaker 1: goes back to this ruling where the Supreme Court said

15
00:00:46,440 --> 00:00:49,960
Speaker 1: a state can't require a mail order seller, and it's

16
00:00:50,000 --> 00:00:53,320
Speaker 1: since been applied to internet sellers to collect tax unless

17
00:00:53,400 --> 00:00:56,480
Speaker 1: that that retailer has a physical presence in the state.

18
00:00:56,920 --> 00:00:59,000
Speaker 1: So what Colorado did was it said, Okay, if we

19
00:00:59,080 --> 00:01:02,040
Speaker 1: can't do that, what will at least do is put

20
00:01:02,120 --> 00:01:08,000
Speaker 1: some um UH notification requirements and reporting requirements on anybody

21
00:01:08,000 --> 00:01:10,400
Speaker 1: who doesn't collect tacks. So you have to send us

22
00:01:10,400 --> 00:01:13,160
Speaker 1: a name of your purchasers. You have to tell UH

23
00:01:13,440 --> 00:01:15,800
Speaker 1: customers that they have an obligation to buy tax and

24
00:01:15,800 --> 00:01:17,479
Speaker 1: send them a report at the end of the year.

25
00:01:18,280 --> 00:01:21,080
Speaker 1: The trade group challenge that, and the Supreme Court said, no,

26
00:01:21,200 --> 00:01:23,840
Speaker 1: we don't want to hear your challenge. Steve. This denial,

27
00:01:24,240 --> 00:01:27,160
Speaker 1: you know, happens in the wake well much later, but

28
00:01:27,319 --> 00:01:30,959
Speaker 1: the wake of decision that seems like it's out of

29
00:01:30,959 --> 00:01:33,240
Speaker 1: touch with the way that the world actually works in

30
00:01:33,280 --> 00:01:35,440
Speaker 1: the now, with the Internet. Do you think there's any

31
00:01:35,520 --> 00:01:37,080
Speaker 1: chance at some point the Court is going to be

32
00:01:37,160 --> 00:01:40,400
Speaker 1: revisiting this issue in regards to the Internet. Well, if

33
00:01:40,440 --> 00:01:42,720
Speaker 1: it decides to accept this case, I think it will,

34
00:01:43,440 --> 00:01:49,120
Speaker 1: and if it upholds the if it upholds the color

35
00:01:49,160 --> 00:01:53,120
Speaker 1: at law, it will at least be chipping away at

36
00:01:53,120 --> 00:01:57,520
Speaker 1: the foundations of that earlier decision. Know, the Constitution's Commerce

37
00:01:57,560 --> 00:02:02,120
Speaker 1: Clause has been held to mean that states cannot burden

38
00:02:02,320 --> 00:02:05,480
Speaker 1: the flow of commerce across state lines, and specifically, they

39
00:02:05,520 --> 00:02:08,400
Speaker 1: can't do things that advantage their own in state companies

40
00:02:08,440 --> 00:02:11,040
Speaker 1: and disadvantage out of state companies. So the court back

41
00:02:11,080 --> 00:02:14,600
Speaker 1: in this case upheld the principle that we need a

42
00:02:14,680 --> 00:02:18,919
Speaker 1: bright line rule. We don't want states imposing taxes on

43
00:02:19,080 --> 00:02:22,200
Speaker 1: out of state corporations because if they do, they might

44
00:02:22,440 --> 00:02:26,679
Speaker 1: misuse that power to advantage their own state interests and

45
00:02:26,800 --> 00:02:29,960
Speaker 1: disadvantage out of state interests. But clearly the internet commerce

46
00:02:30,040 --> 00:02:33,360
Speaker 1: is a multi trillion dollar industry. We're talking about something

47
00:02:33,400 --> 00:02:37,360
Speaker 1: like twenty three billion dollars in uncollected sales taxes. So

48
00:02:37,400 --> 00:02:39,720
Speaker 1: I think the reality is that will force the Supreme

49
00:02:39,800 --> 00:02:43,760
Speaker 1: Court to at least rethink some of that earlier decision.

50
00:02:44,680 --> 00:02:47,919
Speaker 1: And as Steve Sanders, a professor at Indiana University Marrow

51
00:02:47,960 --> 00:02:51,040
Speaker 1: School of Law and Grace Store of Bloomberg, Supreme Court

52
00:02:51,080 --> 00:02:54,079
Speaker 1: reporter and co host of the Bloomberg Law Show, speaking

53
00:02:54,080 --> 00:02:56,519
Speaker 1: with Bloomberg Law host joom grasshow you can listen to

54
00:02:56,520 --> 00:02:59,560
Speaker 1: Bloomberg Law weekdays at one pm Wall Street Time here

55
00:03:00,040 --> 00:03:04,120
Speaker 1: on Bloomberg Radio. And that's this morning's Bloomberg Law Brief.

56
00:03:04,160 --> 00:03:06,920
Speaker 1: You can find more legal news at Bloomberg Law dot

57
00:03:06,960 --> 00:03:10,560
Speaker 1: com and Bloomberg Bena dot com. Attorneys will find exceptional

58
00:03:10,600 --> 00:03:13,440
Speaker 1: legal research and business development tools there as well. Visit

59
00:03:13,440 --> 00:03:16,640
Speaker 1: Bloomberg Law dot com and Bloomberg b and a dot

60
00:03:16,680 --> 00:03:17,880
Speaker 1: com for more information,