Amazon Wins South Carolina Top Court Review of Sales Tax Case

The South Carolina Supreme Court will review Amazon Services LLC‘s challenge to a $12.5 million tax bill for third-party sales on its marketplace.

The e-commerce giant asked the justices to review a January appeals court ruling that it owes taxes on “Fulfillment by Amazon” sales for three months of 2016, before South Carolina passed a law imposing tax obligations on online marketplaces. The legal issue at stake governs a much longer period, meaning the $12.5 million is a small fraction of the company’s potential liability.

The court’s Thursday order limited review of the case to certain issues: whether the appeals ...