Published: Fri, June 22, 2018
Hi-Tech | By Wayne Curry

What the Supreme Court sales tax ruling means for New Yorkers

What the Supreme Court sales tax ruling means for New Yorkers

The high court's 5-4 ruling overturns earlier decisions that said retailers couldn't be forced to collect sales taxes in states where they don't have a physical presence.

Stocks of online retailers were down significantly immediately following the ruling.

U.S. Supreme Court is seen in Washington, U.S. April 24, 2018. Georgia's law applies to companies that do at least $250,000 worth of sales or 200 transactions a year in the state. "You've got to have a modern sales tax, so we don't have to have any other kind of tax that people don't want", Calabro said.

Hearst said MA shoppers who want to avoid paying a state sales tax, travel to New Hampshire.

On June 4, the last day of the special second session, Louisiana legislators rushed through a bill that used the same wording as a South Dakota law that was the subject to the constitutional challenge in the high court.

Still, the group says federal legislation is necessary to spell out details on how sales tax collection will take place, rather than leaving it to each of the states to interpret the court's decision.

He said the ruling was "good news, but it's not a windfall".

Buyers have to pay sales tax if they are shopping from a big box store online because many have stores in every state.

Neymar hobbles out of Brazil training session after 15 minutes
This is the first time since the 1978 World Cup in Argentina that the five-time champions have not won their opening match. All of us have to help the team reach its potential but we have to respect individual characteristics.

Justice Anthony Kennedy wrote the majority opinion, supported by most of the Court's conservatives and, somewhat surprisingly, Ruth Bader Ginsburg.

"At this time, the Department is reviewing the ruling and its impact on Florida sales tax", a Revenue spokeswoman said.

"E-commerce has grown into a significant and vibrant part of our national economy against the backdrop of established rules, including the physical-presence rule", he wrote. "Online retailers likely will have to pay billions more in taxes each year". But state's were missing out on big bucks if there was no physical store.

Smaller online companies are anxious about calculating taxes for literally thousands of jurisdictions. States had no viable way to track down everyone who wasn't paying their sales tax, which is why they wanted to force retailers to collect it regardless of where they were located.

Amazon, which was not involved in the Supreme Court case, collects sales taxes on direct purchases from its site but does not typically collect taxes for merchandise sold on its platform by third-party vendors, representing about half of total sales. Amazon only charges tax for purchases made directly from the online shop, but independent sellers using the site are not required to do so. Etsy and eBay also leave it up to their individual sellers to collect taxes.

South Dakota concluded in 2016 that the explosion in online sales changed the market dramatically.

Today's ruling doesn't require states to collect sales tax-they nearly certainly will if they weren't already-but today's ruling won't' change anything immediately.

"Rejecting the physical presence rule is necessary to ensure that artificial competitive advantages are not created by this court's precedents", Kennedy said.

Like this: