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Supreme Court's sales tax decision will benefit small, local businesses

29 Juin 2018

Three identical bills were filed during the special session to match Louisiana's law with South Dakota's in case the U.S. Supreme Court allows... While online marketplaces eBay and Etsy see the issue as a big retailer versus small seller issue, the NRF says today's ruling creates a fair and level playing field between online merchants and local retailers.

More than 40 states and the Trump administration asked the Supreme Court to overturn its 1992 decision in Quill v.

Owners who have never collected out-of-state sales tax will need to get up to speed. "Our 4,200 retail members and our association have advocated for this decision for decades". North Dakota lawmakers past year passed a bill requiring out-of-state sellers to remit sales tax, treating them as if they have a physical presence in the state.

A U.S. Supreme Court ruling that paves the way for states to collect more sales taxes from online purchases has upended shaky tax negotiations among lawmakers in the Louisiana House.

While Davids estimates that the ruling would bring $150 million into state coffers, some estimates top $200 million more on top of the $64 billion, two-year budget. By early 2017, Amazon was collecting sales taxes in all states that have sales taxes, but it was doing so only for merchandise it sells directly, not for merchandise other retailers sell on its platform.

They also said it was a problem that was shrinking rather than expanding.

States can collect sales tax from online sellers even if those companies don't have a physical presence in the state, The Supreme Court ruled Thursday morning in a case with far-reaching implications for the future of online commerce.

Adrienne Kosewicz who pays $3,300 a year for tax compliance software in 26 states, expects that collecting tax nationwide will raise costs by a manageable 10 percent at her Seattle-based online business, Play It Safe World Toys.

"This historic decision from the Court in support of sales tax fairness is a major victory for the jewelry industry, providing a clear path to level the playing field between traditional and online retailers", says David J. Bonaparte, JA President & CEO.

"This now gives Amazon [, which already collects sales tax, ] insurance against there not being a start-up using the sales tax advantage against them", he said.

Chief Justice John Roberts offered the dissenting opinion, along with Justices Stephen Breyer, Elena Kagan, and Sonia Sotomayor. He said the court had other legal tools to ensure that sales taxes don't become an "undue burden" on small businesses and startups.

"We were hoping one way or another it would be overturned, either by the Supreme Court or Congress", he said.

Now, states can push ahead with legislation requiring companies to collect and remit sales taxes for goods bought online elsewhere. Kennedy also said that the rule makes no sense, and that "this Court should not maintain a rule that ignores these substantial virtual connections to the State".

Supreme Court's sales tax decision will benefit small, local businesses