Supreme Court Decision Will Cost Consumers

24 June, 2018, 23:38 | Author: Lora Ball
  • The U.S. Supreme Court building

Thursday's Wayfair Supreme Court decision could mean state legislatures can now force online retailers to start preparing for new rules in the sales tax world. The nonpartisan Government Accountability Office estimated last year that collecting sales tax on all remote sales could bring state and local governments in Florida anywhere from $486 million to $758 million a year.

South Dakota law requires retailers with more than $100,000 in sales or 200 transactions annually in the state to pay a 4.5 percent tax on purchases. 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. Our reading of the ruling is that the case now returns to the South Dakota Supreme Court to evaluate the case on its merits, unfettered by the now antiquated physical nexus standard defined by Bellas Hess (1967) and upheld in Quill (1992). When New York was added to the list of states, a Trump Store spokesperson told Business Insider the online retailer has "always, and will continue to collect, report, and remit sales taxes in jurisdictions where we have an obligation to do so".

Rep. Tom Reed, R-N.Y., said he supported the ruling's creation of a level playing field between online sellers and physical retailers. Rocky Cummings of BDO the accounting, tax, and advisory firm said: "There was very little voluntary compliance with the use tax".

Lauren Boggs Meslar has been selling patterned paper straws, hemp gift cords and other lifestyle goods on Etsy since 2012, relying on sales from the Etsy shop and her own e-commerce website to "help pay the bills" for her family. One leading voice in that argument, eBay, says many small online businesses will be forced to close. If a company doesn't expect to reach the threshold in a state, it may decide not to collect tax.

Most states now have some kind of sales tax, though the amount-and what items or services are taxed-varies widely from state to state.

More news: Melania Trump's Jacket Choice Criticized

In Oklahoma and in Norman, the biggest online retailer, Amazon, was already voluntarily remitting sales tax which comes to the city from the Oklahoma Tax Commission as a use tax.

But to brick-and-mortar stores, the ruling righted a decades-old imbalance that favored internet retailers and led to the demise of thousands of merchants. The ruling clears the way for states, including MA, to collect an estimated $13 billion or more in extra taxes every year. When you create a way for people to avoid the tax, you distort their behavior (pushing them to buy online when they might otherwise buy in a store) and you reduce tax collections.

South Dakota wanted out-of-state retailers to begin collecting the tax and sued several of them: Overstock.com, electronics retailer Newegg and home goods company Wayfair.

Walls think people understand the importance of keeping brick and mortar businesses for our communities. "It's vital we continue getting that and that we continue getting growth, not just stagnant collections each year", Jennings said at the time.

Recommended:

  • Priest slaps crying baby at baptism ceremony

    Priest slaps crying baby at baptism ceremony

    A video posted on Reddit showing a priest slapping a baby during a baptism is shocking viewers and garnering attention. According to Kidspot in Australia, the man can be heard saying: "it's a tantrum, this is called a tantrum".
    Supreme Court sides with online sales tax

    Supreme Court sides with online sales tax

    Supreme Court hears challenge to union fees and reviews latest travel order. "And that's what has frustrated the state for years". Pete Ricketts was among those opponents, although he had been seeking a compromise at the time the bill failed.
    European Union  says it will start to impose tariffs on United States  on Friday

    European Union says it will start to impose tariffs on United States on Friday

    Trump has also started a trade fight with China over Beijing's sharp-elbowed efforts to overtake USA technological dominance. India and Turkey have already targeted US products, ranging from rice to autos to sunscreen.
  • Does the United States need a Space Force?

    Does the United States need a Space Force?

    Space remains one of the few areas where USA and Russian Federation continue global cooperation. Trump also vowed to soon return the United States to the moon and to reach Mars.
    OPEC oil ministers gather to discuss production level

    OPEC oil ministers gather to discuss production level

    Increased production of United States shale oil took some sheen away from the anticipated impact of the output cuts. With potential 1 million barrels/day addition by OPEC, the market looks to be well supplied until next year.
    UK government defeats pro-EU lawmakers on Brexit, for now

    UK government defeats pro-EU lawmakers on Brexit, for now

    We must be clear that we are united as a party in our determination to deliver on the decision made by the British people. Morgan said if a compromise amendment did not emerge, rebels could work with the Lords to ensure the changes took place.
  • President Trump Signs Order To End Family Separations At Border

    President Trump Signs Order To End Family Separations At Border

    On Tuesday, the Department of Homeland Security said 2,342 children have been separated from their parents since last month. Trump's said the order does not alter the "zero tolerance" policy itself that the administration put in place in April.
    New Zealand Prime Minister Jacinda Ardern gives birth to baby girl

    New Zealand Prime Minister Jacinda Ardern gives birth to baby girl

    The 37-year-old will take six weeks of maternity leave , and has now passed on her duties to Deputy Prime Minister Winston Peters. New Zealand's prime minister Jacinda Ardern has become the first world leader in almost 30 years to have a baby while in office.
    Blatter says England should host World Cup

    Blatter says England should host World Cup

    Blatter, who has repeatedly denied any wrongdoing, last week told the New York Times he would meet Putin during his trip. The Swiss' 17-year spell in charge of world football's governing body ended amid a corruption scandal in 2015 .
  • Victor Moses says Super Eagles plan to score early against Iceland

    Victor Moses says Super Eagles plan to score early against Iceland

    Musa deftly controlled the ball before slamming it past Iceland goalkeeper Hannes Halldorsson on the half-volley. The next chance fell to Leon Balogun but the new Brighton defender headed over the bar despite being unmarked.
    Suarez brings up century of Uruguay caps

    Suarez brings up century of Uruguay caps

    When is FIFA World Cup 2018 Uruguay v/s Saudia Arabia match? "We have to prove we are at the same level of quality as they are". Luis Suarez has become the first Uruguayan player to score in three different editions of the World Cup (2010, 2014 & 2018).
    Time trumps Trump again: Pulitzer Prize-winning John

    Time trumps Trump again: Pulitzer Prize-winning John

    Magazine is making a statement with their new issue which has President Donald Trump towering over a crying child. And the separation from their parents is traumatic enough to be likened to torture .


Popular

Erdogan takes big lead in Turkey presidential vote, results show
Another person who could siphon of votes from Erdogan is the only female candidate, Meral Aksener of the lyi, the Good Party. With the polls officially closed, electoral committees across the country's 81 provinces have started counting the ballots.

Arms control expert imagines the worst with North Korea
Glaser said it was predictable Xi would want to be briefed by Kim directly about the North Korean leader's talks with Trump. Between 1990 and 1992, North Korea returned 46 sets of remains, according to the report.

Yoga Is A Ray Of Hope For Our Future, Says Pm Modi
Yoga also enhances the communication level among people, he added.The Minister said, Yoga is the indicator of human index too. If we take up yoga everyday, we will be calm, peaceful and spiritual. "It has become a powerful unifying force", he said.

Gareth Southgate Dislocates His Shoulder Whilst Out Running
Speaking to BBC One after the Tunisia win, Kane said: "We have shown resilience for a while now since the gaffer come in". From that central position, it is good because I have so many options, I have the ball trying to set up things.

Neymar pulls up injured in Brazil training
It was a free kick from Kolarov that put Serbia in solid position in the group, but Switzerland may be as tough a foe as Brazil. Meanwhile Nigeria will be looking for a win as they lost their opener against Croatia and need the three points.

Neymar returns to Brazil World Cup training
He tried to continue playing but a few moments later chose to leave, kicking a ball away with his left foot before limping away. Rodrigues said the pain Neymar felt Tuesday was not in the same place where he injured his foot earlier this year.

PDP fallout: PM Modi's Kashmir policy is correct, says Rajnath
Omar hit back, saying he had no doubt about his MLAs and referred to the BJP's alleged horse-trading bids in Jammu and Kashmir. But in the three and half years of the rule, there has been perpetual sparring between PDP and BJP over several issues.

Israeli Prime Minister Benjamin Netanyahu's wife charged with fraud
The expenses claims were said to have been made whilst covering up the fact that the residence also employed a cook. A former deputy director of the prime minister's residence is also charged in the case.

Peru vs France LIVE on SBS
With Peru pushing for an equaliser, Deschamps opted for a change with 15 minuets remaining as Mbappe made way for Dembele. Guerrero almost missed the World Cup before having his doping ban lifted by a Swiss judge prior to the tournament.

In Wayfair case, Supreme Court to let states collect Internet sales tax
It's also a big change for consumers, particularly when making big ticket purchases like an expensive camera, laptop or handbag. Some states will still have to pass new legislation to demand tax from out-of-state orders, and that isn't always guaranteed.