SCOTUS rules states can collect taxes from online shopping transactions

SCOTUS rules states can collect taxes from online shopping transactions

Governor Mary Fallin also applauded the Court decision which overturned an earlier ruling that a business had to have a physical presence in a state in order for that state to collect state sales tax on online purchases.

It should also help brick-and-mortar retailers, who have suffered for years from uneven competition with online stores that don't have to collect the state's 6.25 percent sales tax. Amazon collects sales tax from customers in the 45 states that have a sales tax.

The cases the court overturned said that if a business was shipping a customer's purchase to a state where the business didn't have a physical presence such as a warehouse or office, the business didn't have to collect sales tax for the state.

Prior to Wayfair v South Dakota, businesses that didn't have a physical location in a state were not required to remit sales taxes to that state government for their sales. Some estimates claim that sales tax avoidance was a great benefit to shopping online - possibly worth $8 billion to $33 billion in uncollected taxes per year. Yet there are many instances in which web merchants don't collect the tax. He said the court had other legal tools to ensure that sales taxes don't become an "undue burden" on small businesses and startups.

Meanwhile, a statement release Thursday said the state Chamber was "very pleased" with the decision.

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The conservative chief justice, John Roberts, dissented along with liberal Justices Stephen Breyer, Sonia Sotomayor and Elena Kagan.

Francisco said the city collected an additional $600,000 or $700,000 over the last 12 months since Amazon.com started to collect and remit sales tax.

Lawmakers have tried unsuccessfully to pass online sales tax legislation for years, with the most recent attempt failing after several conservatives called the provision a tax increase on online shoppers. The ruling upheld a South Dakota law that exempts sellers with $100,000 or less in sales in the state. But it's also "much bigger than that", Jackley said.

Buying stuff online is an easy option that sometimes comes with an extra discount: no sales tax. In 2015, 72.5 percent of Tennessee's total tax revenues came from sales tax. "Now our members are going to be able to figure out how to construct their businesses without worrying about whether putting a distribution center on this side of a state line or that side of the state line will result in a different tax implication". The court corrected a fundamental unfairness in sales tax collections, and state legislators have an obligation to follow up. Perhaps most importantly, the state law does not permit sales tax collection for past purchases, meaning that businesses don't have to worry about a huge tax bill that they never anticipated. In that case, Quill v. South Dakota has estimated it loses about $50 million annually to e-commerce.

"I've been seeing a lot of Chicken Little 'the sky is falling, the sky is falling, '" says Sueanne Shirzay, who operates a shop on Etsy and her personal website selling handmade jewelry. "And it's about time".

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