Home » Money

US Supreme Court Rules States Can Tax Online Sales

25 June, 2018, 06:58 | Author: Sara Gill
  • US Supreme Court Rules States Can Tax Online Sales

The court ruled Thursday that states can require online retailers to collect sales taxes even if the retailers do not have a physical presence in the state.

A statement from the large retailer Target said: "We are pleased the Court's ruling will close the loophole that has allowed online-only retailers to avoid collecting and remitting sales taxes while still requiring local businesses to do so".

How will this affect your wallet?

Amazon, with its network of warehouses, voluntarily collects sales tax in every state that charges it, though third-party sellers who use the site to sell goods don't have to. This would amount to substantial savings for shoppers. The decision was also having an impact on states' bottom line, Kennedy said, citing estimates that states are losing $8 billion to $33 billion a year in sales tax revenue. Prior to the ruling, sellers were responsible for collecting sales taxes if they had a presence in the state. The ruling led to Wayfair stocks declining 3.8 percent while Overstock lost 2.1 percent. "We do have a mechanism in place in Tennessee that we can begin collecting sales tax", Hawk said. "I personally think it's a good move", he said. Kennedy said that position was archaic, "unsound and incorrect" in the internet age.

But many smaller online retailers are women, minorities, veterans and people with disabilities who have taken advantage of the protections granted by the Supreme Court and Congress over the years.

"With today's ruling, all businesses will compete on a level playing field", said South Dakota Gov. Dennis Daugaard (R), whose state brought the challenge to the Supreme Court.

The South Dakota law, enacted in 2016, required out-of-state online retailers to collect sales tax if they amass $100,000 in sales or 200 separate transactions. The South Dakota Supreme Court invalidated the law because Quill Corp. v.


Nebraska Tax Commissioner Tony Fulton said Thursday morning that officials were still reading the court opinion and could not comment on how it might affect the state.

But tax experts say better software has made it easy to quickly calculate the exact rates for each locale, and many states have devised a "streamlined" filing system, in which a single state office collects and dispenses taxes for its counties and cities.

This law affects IL shoppers that check out of shopping sites without paying sales tax, and the sites are now required to add them.

A case study Vince Kadlubek was originally happy enough when he heard of the Supreme Court ruling. Until that case is resolved, South Dakota has already enjoined itself from enforcing that law on any out-of-state retailers. Many small online sellers may use Amazon's platform as it will collect and remit sales tax for them.

The Trump administration had urged the justices to side with South Dakota.

More than 40 states had submitted testimony in favor of upholding the South Dakota law. Even before the Supreme Court's ruling, however, Amazon had said it was moving to collect state sales taxes on its inventory sold in all 45 states with statewide taxes.

The case is South Dakota v. Wayfair, 17-494.

Recommended:



Popular

Senegal seek to seize last 16 spot tonight
Steen: Japan scored an upset win over Colombia with some strong play, but Senegal also shocked Poland in their opening game. This is at a point facts show that black managers are a rare sight in World Cups, despite its expansion from 24 to 32 teams.

Romelu Lukaku, Eden Hazard give BEL big win
Wahbi Khazri bagged a late consolation for Tunisia , but it did little to take the shine off a memorable result for Belgium . With the last touch of the half, Lukaku reimbursed their two-goal advantage with a deft chip over an advancing Ben Mustapha.

Senegal registers Africa's first win in 2-1 defeat of Poland
Senegal's 2-1 victory over Poland came in the day's second Group H game, following Japan's historic 2-1 win over Colombia . Today we finally accompany our team COLOMBIA!" "We lost a match, but now we have to win the next and keep dreaming".

Priyanka Chopra and Nick Jonas PDA game going strong!
Still not totally convinced that Nick Jonas and Priyanka Chopra are a thing ? A source told People magazine: "They're very happy". Priyanka Chopra is just making headlines every single time after being spotted with Hollywood sensation Nick Jonas several times.

US President Donald Trump orders halt to migrant family separations at border
Speaker of the House of Representative Paul Ryan said it would vote today (June 21) on legislation to "keep families together ". The order does not end the "zero-tolerance" policy that criminally prosecutes all adults caught crossing the border illegally.

The Supreme Court just caused stocks of online retailers to tumble
Supreme Court . "There are nuances to every opinion", he said. "The taxpayers of Florida really rely heavily on the sales tax". Pete Ricketts was among those opponents, although he had been seeking a compromise at the time the bill failed.

Spain beat Iran 1-0 with Costa's third goal of World Cup
Diego Costa's third goal in two matches at the World Cup has lifted Spain to a 1-0 win over a stubborn Iran side Wednesday. The Carlos Queiroz's men will be hoping to beat the La Rojo so as to top the group after beating Morocco 1-0 on Friday.

Gregg Popovich went to SD to meet Leonard, report says
The two had a "good" conversation and "more dialogue" is expected, Jabari Young of the San Antonio Express-News reports . The Spurs are unlikely to be motivated to trade Leonard to the Lakers .

Uruguay win ends Saudi Arabia, Egypt hopes at World Cup
Facing elimination, the Saudis fought hard for a goal with Hatan Bahmi getting several early chances. Luis Suárez opened the scoring from close range after 23 minutes.

Fox set to decide on Comcast’s $65-billion cash bid
That's why Disney raised their previous bid to a bid of $71.3 billion, 10% above the one Comcast submitted previously. Both Disney and Comcast are looking to use the Fox assets to bolster their content and expand overseas.