SHOPPINGSupreme Court rules states can force online shoppers to pay sales taxSHARE:sharetweetshareemail
21 June, 2018, 19:10
That's not a Supreme Court lineup you see very often.
Supreme Court Justice Anthony M. Kennedy agreed in the majority opinion, finding that 25-year-old rule "prevented market participants from competing on an even playing field".
B&H doesn't require that buyers pay sales tax if they place orders outside of NY or New Jersey, and while you're supposed to later pay those uncollected funds when tax time comes around, the vast majority of people don't. Amazon stock is down over 1.2%.
The decision is a big win for major corporations such as Apple and Walmart, who generally pay sales tax due to their "physical presence" in most states throughout the country.
E-commerce now makes up about 10 percent of USA retail sales, according to the Commerce Department.
Alternatively, some people argue that the costs associated with being forced to comply with these new regulations could put some smaller retailers out of business entirely.
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South Dakota is leading the legal charge, passing a law requiring the collection of sales tax on Internet vendors with at least 200 yearly transactions or $100,000 in sales to its residents.
That said, South Dakota's tax system includes several features that appear created to prevent discrimination against or undue burdens upon interstate commerce. Although technically consumers are required to pay sales tax on all purchases, it is practically impossible to collect without the retailer applying it at the point of sale.
States stand to gain billions of dollars with the ruling and marks a new era with an Internet economy that has boomed over the past decade and become a dominant force.
The idea of online taxes for a long time was limited to companies who had a physical presence in that state.
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