Amazon Ruling Sparks Concern About Retroactive Tax Obligations

The South Carolina Supreme Court’s ruling upholding Amazon Services LLC’s multi-million dollar sales tax obligations has the potential to empower other courts to reinterpret older tax laws to fit modern business models, taxpayer advocates warn.

The 3-2 court ruled Wednesday that the e-commerce giant owes taxes on third-party sales for three months of 2016 under a state law imposing collection obligations on anyone engaged in the business of selling tangible property. The dissent argued that because both parties presented reasonable interpretations of the statute, the court was required to rule in the taxpayer’s favor.

The court “missed a critical opportunity” ...