In Wayfair case, Supreme Court to let states collect Internet sales tax

Enlarge  The US Supreme Court building in Washington DC. Getty Images | Mike Kline

Enlarge The US Supreme Court building in Washington DC. Getty Images | Mike Kline

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.

The 1992 decision eventually gave a huge boost to out-of-state online retailers in that they received a consistent state tax subsidy with every sale that their in-state and local competitors - brick-and-mortar and online alike - did not receive.

Prior to Wayfair v South Dakota, businesses that didn't have a physical location in a state were not required to remit sales taxes to that state government for their sales.

A decision handed down by the United States Supreme Court Thursday clears the way for Vermont to collect taxes on internet sales from companies that do not have a physical presence in state. North Dakota decision was outdated and that sales tax collection is no longer the burden it might once have been due to changes in technology.

Jackson said the Supreme Court's ruling is a big win for IL.

NEW YORK (AP) - In a story June 23 about the Supreme Court sales tax decision, The Associated Press reported erroneously that online retailer Adrienne Kosewicz pays $3,300 a year for tax compliance software for sales in her home state, Washington.

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Additional reporting from Newsy affiliate CNN. Estimates suggested that the states missed out on $8 billion to $33 billion per year. In the brief, NRF cited a wide variety of software available to automatically collect the sales tax owed, much of its available free or at low cost.

Still, the ruling was a central topic of discussion Thursday in the House, where lawmakers in a special session are haggling over sales tax measures aimed at lessening steep budget cuts that hit in July. "Whether you're an online retailer or a brick-and-mortar retailer, you should have the same legal standards apply for you with respect to taxation, and that's really what this decision is about".

Attention shoppers: You may soon be paying more taxes on what you put in your online cart.

Vermont has already made efforts to collect sales tax on online sales.

"This will go a long way to ensure local businesses are on a level playing field with online retailers", he said. Five states don't charge sales tax. The state appealed the decision, and the Court reversed its 1992 decision on Thursday. "We look forward to working with state leaders as they take the necessary actions to ensure that this tax, which has been required under Florida law for decades, is collected moving forward".

But plenty of smaller players, such as home furnishings websites Overstock.com and Wayfair, don't have widespread enough operations to be subject to state taxing authority, giving them a substantial price advantage over traditional brick and mortar businesses.

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