Supreme Court decision on sales tax could see local impact

Supreme Court decision on sales tax could see local impact

"It is a big day, especially for Main Street retailers, community retailers", Nustad said. North Dakota, which established the physical presence test for sales and use tax nexus.

Many online sales sites, including Amazon and Best Buy, already collect Minnesota sales taxes.

"It is about Main Street fairness", Davids said after the high court released its ruling Thursday.

"Quill creates rather than resolves market distortions", the ruling says.

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Estimates have varied on how much Florida would get if it captured taxes on its residents' online purchases, from $200 million to more than $750 million.

In 1992, mail-order sales in the United States totaled $180 billion.

Sellers that use eBay and Etsy, which provide platforms for smaller sellers, also haven't been collecting sales tax nationwide. The results were published in the April 1 issue of BRAIN.

The 5-4 ruling is widely seen as a victory for brick-and-mortar stores, who previously said that online retailers' ability to skirt sales tax collection gave them an advantage.

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"Today's decision promises to subject small businesses reliant on e-commerce to new and burdensome tax obligations in states across the nation", said Ed Black, president of the Computer & Communications Industry Association, in a statement Thursday.

The US Supreme Court ruled Thursday that American states had the right to tax internet sales of goods and services.

However, under the new ruling, NY consumers would have to pay sales tax even though Newegg has no physical storefront in the Empire state. Kennedy said that position was archaic, "unsound and incorrect" in the internet age. Online retailers sued over the scheme, and the Supreme Court allowed the case to proceed.

The decision came on a South Dakota suit against Wayfair.com, with the state claiming the company should collect sales taxes on sales in the state. This will be a huge boost to state budgets, but online retailers won't be pleased.

"The burden will fall disproportionately on small businesses", he wrote.

While this ruling is beneficial to state governments, it stands to have a negative impact on retailers and consumers alike. The law that sparked this challenge passed in South Dakota in 2016. Quill determined how state taxes worked with e-commerce from the web's first days.

In the new case, South Dakota v. Wayfair, South Dakota had attempted to overturn that precedent, arguing that Quill was decided before the existence of internet commerce.

That's because lawmakers in Olympia have already moved to expand online sales-tax collections in bits and pieces. Likewise, eBay now does not require sellers to collect state sales taxes.

This story is developing and will be updated.