Published: Fri, June 22, 2018
Industry | By Johnnie Johnson

SCOTUS ruling has huge implications for online shopping

SCOTUS ruling has huge implications for online shopping

Brick-and-mortar retailers have argued that online retailers have an unfair advantage.

Taxes on TV services is not new.

"The taxpayers of Florida really rely heavily on the sales tax".

"I think we're going to see a little bit of an increase in traffic just because of that, and that's kind of nice and people will be a bit more aware", said Wald.

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Hufstetler was instrumental in crafting legislation that drops the top tax rate to 5.75 percent, from 6 percent, next year and schedules a decrease to 5.5 percent in 2020. Local governments will get the share they're already allotted. All three companies sold online merchandise in the state, but did not have a physical location or employees there, and were exempted from collecting sales tax from their South Dakota customers. It will leave shoppers with lighter wallets but is a big financial win for states. The DOR decided that as long as a company is doing business in MA using computer software or hardware located in the state, or is using Massachusetts-based delivery services or payment processors, that counts as having a physical presence in the state.

"If it's an internet sales, in the past, the person's been responsible". On Twitter, President Donald Trump called the decision a "Big victory for fairness and for our country". For decades, these sales tax laws were only applicable on purchases that were made from retailers who had a physical presence within that state. In particular, Chief Justice John Roberts Jr. noted that numerous largest online retailers, including Amazon and eBay, were already collecting sales taxes for the states voluntarily. All but five states impose sales taxes. Other states are now expected to pursue sales tax on out-of-state online purchases, with more legal fights likely.

Kennedy was joined by Justices Clarence Thomas, Ruth Bader Ginsburg, Samuel Alito, and Neil Gorsuch to make the decision.

IL consumers are supposed to pay use tax to the state if sales tax isn't charged on a purchase, but experts say underreporting is an issue.

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Broader taxing power will let state and local governments collect an extra $8 billion to $23 billion a year, according to various estimates.

"Amazon's third-party business should be minimally affected in the long term from states imposing taxes on online sales, as the impact is equal across the e-commerce ecosystem." said Jitendra Waral, an analyst at Bloomberg Intelligence.

South Dakota wanted out-of-state retailers to begin collecting the tax and sued several of them: Overstock.com, electronics retailer Newegg and home goods company Wayfair.

However, under the new ruling, NY consumers would have to pay sales tax even though Newegg has no physical storefront in the Empire state.

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The National Retail Federation, a trade association, cheered Thursday's ruling, saying it would help to create a "fair and level playing field where all retailers compete under the same sales tax rules whether they sell merchandise online, in-store or both".

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