Sales Tax on Internet Sales

The Supreme Court has backed state sales tax on Internet sales. New Mexico had imposed its gross receipts tax on Dell Computer’s Internet sales in the state, even though Dell had no physical presence in the state other than a third-party service tech under contract. State courts found for the state, and the Supreme Court refused to hear the case. Sales taxes on Web sales face more challenges, but the tax should not be ignored. [Dell Marketing LP v. Taxation and Revenue Dept. of the State of New Mexico, No. 26,843, N.M. Ct. App. 2008]