Two trade groups have filed a lawsuit to prevent Tennessee from requiring large retailers to collect sales taxes for online purchases, the Associated Press reported.

The lawsuit by the American Catalog Retailers Association and NetChoice alleges that federal law only permits states to require sales tax collection if a retailer has a physical presence within their borders. The complaint was filed in chancery court in Nashville.

A new rule recently implemented in Tennessee requires retailers with sales of more than $500,000 to collect sales taxes, regardless of whether they have a store or office in the state, the AP reported. Similar laws and tax rules have been implemented in other states, with varying degrees of success.

Tennessee Gov. Bill Haslam, a Republican, told reporters that he hopes the U.S. Supreme Court will revisit the issue in the near future. The court hasn't weighed in on the collection of sales taxes from out-of-state sales taxes since 1992, but "the world's changed" since then with the explosion on online commerce, he said.

The associations said in their lawsuit the state simply can't ignore legal precedent.

"An anticipated change in law cannot be the basis for an administrative regulation that contravenes existing Supreme Court precedent," the groups said. http://bit.ly/2o2sqNw

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