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Supreme Court sales tax ruling to make online shopping more expensive

24 Juin 2018

The Supreme Court ruled today states can now require online retailers to pay sales tax.

Many brick and mortar stores have shut down in recent years as they've struggled to compete with online retailers. Until now, online retailers with no physical presence in a state were not. Matt bought has a Syracuse gnome thta he bought online, and since the store has no physical presence in Arizona, he didn't have to pay sales tax.

In Kansas, it could mean an extra $200-million to spend on education, senior services, roads - whatever lawmakers decide.

The tax is 6.25 percent.

"We expect most states that impose retail sales tax to enact new legislation that require [s] at least large out-of-state online retailers to collect sales tax at time of sale", S&P said in a news release.

But the move could impact thousands of smaller retailers in MA and across the country as they try to comply with a labyrinth of differing state and local rules.

However, before Thursday's Supreme Court decision state leaders were bracing for companies to challenge that law in court.

The court added that companies such as Newegg, Wayfair, and Overstock "each easily meets the minimum sales or transactions requirement of the Act, but none collects South Dakota sales tax". "Great victory for consumers and retailers".

Estimates have states missing out on $8 to $13 billion just past year.

Five states - Delaware, Montana, Oregon, New Hampshire, and Alaska - do not have a state sales tax.

Now it's up to Congress to figure out a system for interstate commerce that's simple enough for small businesses to manage while still allowing states to determine how taxes will be collected.

Justice John Roberts Jr. wrote the dissent. North Dakota standard that remote businesses need a physical presence to be taxed. Now, rivals will be charging sales tax where they hadn't before. Supreme Court's decision to let states collect sales tax from online purchases could lead to Nebraska putting the money toward property tax relief. Physical stores have always had to charge sales tax, but many online retailers have been able to undercut them by ignoring sales tax.

Supreme Court sales tax ruling to make online shopping more expensive