Online Sales Tax Ruling Could Bring $30M More To Nevada

Online Sales Tax Ruling Could Bring $30M More To Nevada

Online Sales Tax Ruling Could Bring $30M More To Nevada

Wayfair (W) operates five online retail sites that sell a variety of goods for the home. Last month, Trump's business quietly updated the list of states to include NY, while Virginia was added not long before that.

Online shopping may soon be a little more expensive.

The tax is 6.25 percent. The South Dakota law only applied the tax to online retailers that had at least $100,000 of annual sales in the state or 200 individual transactions. "For the retailers, in the state, it's probably a win". Big victory for fairness and for our country. "A virtual showroom can show far more inventory, in far more detail, and with greater opportunities for consumer and seller interaction than might be possible for local stores".

The Supreme Court's 5-4 decision overruled a 1992 ruling that found the Constitution didn't allow states to require businesses to collect sales taxes unless they have a substantial connection to the state. Amazon already taxes items from its own warehouses.

Justice John Roberts Jr. wrote the dissent.

Sales tax collection previously followed that is commonly known as the physical presence rule. He said because they didn't have to collect sales tax, many e-retailers had a competitive advantage over brick and mortar stores.

Will people be turned off online shopping by a sales tax?

The chamber is a long-time advocate for online sales tax collection. 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.

The case also stemmed from a challenge from the state of North Dakota, which argued that it was losing an estimated $50 million in taxes because of the previous rules. But smaller online stores may not have been collecting sales tax, which the Supreme Court ruling could change.

Last year, third-party sales earned Amazon almost $32 billion across the globe, according to SEC filings, and the business is growing rapidly.

The ruling may now spur Congress to establish a single federal standard, including a uniform small-business exemption and limited ability for states to pursue out-of-state audits.

"The Court's decision provides no hard-and-fast rules for states to follow", says Carl Davis, research director at the Institute on Taxation and Economic Policy, in Washington, D.C.

Noticias relacionadas

[an error occurred while processing the directive]