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Sales tax invasion: Retailers drafted as tax collecters

29 Juin 2018

It's being hailed as a major landscape changer in the retail industry.

The U.S. Supreme Court cut online retailers a break in 1992, ruling states couldn't force them to charge and remit sales taxes unless the retailers also had a physical presence there.

Home Accents Today gathered thoughts from industry officials and asked retailers to share their thoughts on the decision. Plenty of retailers still do not collect the tax and consumers aren't keeping track to pay it on their income taxes. It called South Dakota's tax threshold of 200 orders a year, for example, "ridiculously small".

"We think retailers should play under the same tax rules regardless of how they deliver merchandise, through stores, online or a catalog", Shearman said.

For a case that is being upheld as a bringer of clarity, the Wayfair decision is certainly providing a good bit of uncertainty as well.

"But there was a study by the U.S. Government Accountability office in November that estimated a potential between $93 million to $140 million in Kentucky if the tax was collected from all remote sellers", he said. We disagree. If certain retailers are harmed by unconstitutional tax policy, it is up to the Supreme Court to render a decision. NRF believes a federal legislation must clarify sales tax collection procedure rather than leaving it to states' interpretation. The decision by the Court creates a cleaner playing field. This came in the wake of a state Supreme Judicial Court ruling that the proposed "Millionaire Tax" ballot question was unconstitutional for technical reasons (Eagle, June 19). Taxpayers should expect a proliferation of state sales and use tax nexus provisions in the near future that mirror South Dakota's laws and that will seek to further extend the outer bounds of permissible sales and use taxation imposed by the states. North Dakota, turned on the so-called dormant commerce clause, a judge-created legal doctrine that says states can't unduly burden interstate commerce unless authorized by Congress. States should not have the power to extend their state laws to businesses beyond their own borders. The Supreme Court's 5-4 ruling in favor of the changes has now been equalized.

Rep. Tom Reed, R-N.Y., said he supported the ruling's creation of a level playing field between online sellers and physical retailers.

Roberts adds, "Among the top 100 Internet retailers that rate is between 87 and 96 percent".

The ruling is likely to be welcomed by state governments, who have argued that the de facto sales tax exemption on items bought online deprives them of a vital source of tax revenue. Special interest politics is behind the Supreme Court's decision. ALA's members were excited to receive the news during Lightovation, last week.

Trump tweeted after the declaration that handed a victory to states looking for a new revenue flow from online retailers.

Undoubtedly, sites and services will pop up to help you through the transition period and determine whether you're exempt from a particular state's tax law. The result will be a patchwork of state laws, forcing retailers to navigate a tangled web of regulations.

"I've always said for years that we can not keep our dollars in the state long enough for them to benefit Wyoming", Peterson said.

A milestone decision by USA lawmakers could soon force Canadian online retailers to pay sales taxes on products sold into the US, part of a long-awaited ruling that will have a ripple effect across Canada's e-commerce sector. In his dissent, Chief Justice Roberts noted that the new tax rules might be burdensome for small retailers, and lawmakers must work to provide direction for those retailers.

"When you are dealing with the virtual cloud, it gets complicated", Reed said.

Sales tax invasion: Retailers drafted as tax collecters