SCOTUS rules states can collect taxes from online shopping transactions

US Supreme Court Online shoppers can be forced to pay sales tax

US Supreme Court Online shoppers can be forced to pay sales tax

According to the General Accountability Office, prohibitions against collecting sales taxes from online retailers cost states as much as $13.4 billion previous year. The attorney general of South Dakota, who defended a state rule that required out-of-state retailers to collect state taxes, said the decision is a win for the state and small businesses. Matt bought has a Syracuse gnome thta he bought online, and since the store has no physical presence in Arizona, he didn't have to pay sales tax.

The Supreme Court has overruled a 1992 decision that prevented states from requiring businesses to collect sales taxes if they didn't have a physical presence in the state, The New York Times reports. 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". As part of an ongoing spat with Amazon's owner, Jeff Bezos, President Donald Trump has repeatedly accused the online retail giant of dodging taxes and putting physical retailers out of business.

"Between targeted advertising and instant access to most consumers via any internet-enabled device, a business may be present in a state in a meaningful way without that presence being physical in the traditional sense of the term", Justice Anthony Kennedy wrote in his opinion.




Justice John Roberts Jr. wrote the dissent. Customers were generally responsible for paying the sales tax to the state themselves if they weren't charged it, but most didn't realize they owed it, and few paid.

The Supreme Court agreed to overturn those decisions in a 5-4 ruling.

Although it is the poster child for big e-commerce, Amazon wasn't involved in the lawsuit and the immediate decision doesn't affect the company dramatically. 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. South Dakota's governor has said his state loses out on an estimated $50 million a year in sales tax that doesn't get collected by out-of-state sellers. The Supreme Court heard the case in April of this year and decided in South Dakota's favor. "This decision will allow states the ability to level the playing field for all retailers". The law applies to out-of-state retailers if they have more than $100,000 in sales or complete more than 200 transactions per year within South Dakota. Avalara helps companies around the world comply with sales tax laws using automation software.

Recommended News

  • Oil train derails in Iowa, spilling crude into the river

    Oil train derails in Iowa, spilling crude into the river

    Governor Adam Gregg listen to flood victims while visiting the northwest Iowa flood regions and the BNSF train derailment. Metropolitan Utilities District, which provides the Omaha metro area's drinking water, said it was monitoring the spill.
    Instagram brings long-form video to 1 billion users

    Instagram brings long-form video to 1 billion users

    These longer videos on IGTV can be up to an hour long , in case you were wondering just how long these long-form videos might be. IGTV was revealed at an event today this morning where the company also shared that it now has 1 billion monthly active users .
    Anthony Bourdain Had No Narcotics in System at Time of Death

    Anthony Bourdain Had No Narcotics in System at Time of Death

    Bourdain was open about his previous battled with drug abuse in his youth, and admitted to being a heroin addict until the 1980s. One of those celebrities was Anthony's girlfriend, Asia Argento - one of the most vocal accusers of Harvey Weinstein.
  • Mexico close in on last 16 with 2-1 South Korea win

    Mexico close in on last 16 with 2-1 South Korea win

    The goal came somewhat against the run of play as South Korea had been pressuring the Mexican end looking for an equalizer. South Korea , beaten by a Sweden penalty in their first match, had their chances but again lacked cutting edge up front.
    Game Of Thrones stars tie the knot

    Game Of Thrones stars tie the knot

    Speaking outside the castle Sebastian Leslie said: "We are absolutely thrilled for Kit and Rose to be marrying today". Leslie's look is absolutely stunning - from the lace and beading gown details to the lovely flower crown on her head.
    Sony Issues Statement Regarding Fortnite Cross-Platform Play on PS4

    Sony Issues Statement Regarding Fortnite Cross-Platform Play on PS4

    What has followed has been a fairly justified backlash towards Sony which we have now learned extends to the company's stock. Sony released a statement to BBC in an attempt to de-escalate the situation, but their response lacks any real information.
  • FIFA fines 3 Swiss players for goal celebration gestures

    FIFA fines 3 Swiss players for goal celebration gestures

    Croatia's FA was fined 13,000 Swiss francs after its fans were involved in fights and throwing of objects during the same game. Arsenal defender Stephan Lichtsteiner risks suspension over a goal celebration during Switzerland's World Cup campaign.
    Lakers draft trade aimed at superteam built around LeBron James

    Lakers draft trade aimed at superteam built around LeBron James

    LeBron and Kawhi joining forces in Los Angeles is still very much in play despite the recent noise to the contrary. It also gives UM a player in the first round for the third straight year and in five out of the last six .
    Chip and Joanna Gaines Welcome Baby No. 5 -- See the First Pics

    Chip and Joanna Gaines Welcome Baby No. 5 -- See the First Pics

    The couple has four older children - Drake , 13, Ella , 11, Duke , 9, and Emmie Kay , 8. He also added that, "Big momma is doing great".
  • Saudi Arabia persuades Iran and OPEC to agree increase in oil production

    Saudi Arabia persuades Iran and OPEC to agree increase in oil production

    President Donald Trump has been calling publicly for the cartel to help lower prices. In practice, its combined output was even less due to production problems.
    Caretaker Hierro leaving his mark on Spain at World Cup

    Caretaker Hierro leaving his mark on Spain at World Cup

    Iranian defender Majid Hosseini kicked the ball, causing it to deflect off Diego Costa and into his own goal. An Iran win against a tough Portugal squad on Monday will punch the Persian team's ticket to the final 16.
    Eagles have early advantage in group play — Serbia Surprise

    Eagles have early advantage in group play — Serbia Surprise

    Milinkovic-Savic gave Navas a workout in the first half, and while he didn't score, he is clearly a potent weapon for Serbia . Costa Rica face an upwards battle to qualify with Brazil and Switzerland to come in Group E following their loss to Serbia .

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.