High Court: Online shoppers can be forced to pay sales tax
News Releases
The Supreme Court says states can force online shoppers to pay sales tax. The 5-4 ruling Thursday is a win for states, who said they were losing out on billions of dollars annually under two decades-old Supreme Court decisions that impacted online sales tax collection.
The high court ruled Thursday to overturn those decisions. They had resulted in some companies not collecting sales tax on every online purchase. The cases the court overturned said that if a business was shipping a product to a state where it didn't have a physical presence such as a warehouse or office, the business didn't have to collect the state's sales tax. Customers were generally supposed to pay the tax to the state themselves if they don't get charged it, but the vast majority didn't. Justice Anthony Kennedy wrote that the previous decisions were flawed.
"Each year the physical presence rule becomes further removed from economic reality and results in significant revenue losses to the States. These critiques underscore that the physical presence rule, both as first formulated and as applied today, is an incorrect interpretation of the Commerce Clause," he wrote.
In addition to being a win for states, the ruling is also a win for large retailers, who argued the physical presence rule was unfair. Retailers including Apple, Macy's, Target and Walmart, which have brick-and-mortar stores nationwide, generally collect sales tax from their customers who buy online. That's because they typically have a physical store in whatever state the purchase is being shipped to. Amazon.com, with its network of warehouses, also collects sales tax in every state that charges it, though third party sellers who use the site to sell goods don't have to.
But sellers that only have a physical presence in a single state or a few states could avoid charging customers sales tax when they're shipping to addresses outside those states. Online sellers that don't charge sales tax on goods shipped to every state range from jewelry website Blue Nile to pet products site Chewy.com to clothing retailer L.L. Bean. Sellers who use eBay and Etsy, which provide platforms for smaller sellers, also aren't required to collect sales tax nationwide.
Related listings
-
Yankton lawyer Jason Ravnsborg wins GOP attorney general nod
News Releases 06/22/2018South Dakota Republicans on Saturday chose Yankton lawyer Jason Ravnsborg to run against Democratic former U.S. Attorney Randy Seiler in the race for state attorney general.GOP delegates voted to nominate Ravnsborg at their state party convention, wh...
-
Taxpayer tab for law firm overseeing Atlantic City hits $4.8M
News Releases 06/18/2018New Jersey taxpayers' tab for the takeover of Atlantic City has reached about $5 million in fees from the law firm former Gov. Chris Christie picked to oversee the gambling resort.Records obtained Thursday by The Associated Press show the firm of Chi...
-
State appeals court reinstates California's right-to-die law
News Releases 06/15/2018A state appeals court has reinstated — at least for now — California's law allowing terminally ill people to end their lives.The Fourth District Court of Appeals in Riverside issued an immediate stay Friday putting the End of Life Option ...
Lawyer Website Design For Sole Practitioners - Law Promo
Law Promo understands that running a solo law practice can be a difficult undertaking at any stage, especially if you are just starting up your practice.
The most challenging part of running any solo business can be managing each and every aspect, especially those areas in which you have less experience. Marketing is often one of the weakest areas for small businesses and yet is the most important in ensuring business growth.
A solid internet marketing campaign is crucial, as it can level the playing field between you and larger firms and is by far the most cost effective way to attract more clients.