Enzi applauds Supreme Court ruling on sales taxes

Enzi applauds Supreme Court ruling on sales taxes

Enzi applauds Supreme Court ruling on sales taxes

The Supreme Court overrules the Quill case, which previously set the precedent for collecting sales tax from online sellers.

In a statement by Rauschenberger, there will be criteria businesses have to meet before they are required to collect sales tax for the state.

Only five states do not have a state-wide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon.

Under the ruling Thursday, states can pass laws requiring out-of-state sellers to collect the state's sales tax from customers and send it to the state. However, consumers have the option to shop online, pay no sales tax, and get the item cheaper, which is not fair to local stores, Deskins said. That wasn't correct: The company has collected taxes since April 1, 2017, on sales to customers in the 45 states that collect them.

"Justice Anthony Kennedy who delivered the courts opinion said the 1992 ruling is now" obsolete" being that we are now in the e-commerce era. It will leave shoppers with lighter wallets but is a big financial win for states. That's because they typically have a physical store in whatever state the purchase is being shipped to.

But most of Amazon's purchases are from millions of independent merchants who post inventory on the webstore, and many of those sales now are not taxed, and 3rd-party merchants account for about 50% of Amazon's total online sales. The decision was also having an impact on states' bottom line, Kennedy said, citing estimates that states are losing $8 billion to $33 billion a year in sales tax revenue. The internet retailers argued that allowing every state to collect taxes on online sales would cause confusion and unreasonable burdens in today's online-heavy retail economy. States had no viable way to track down everyone who wasn't paying their sales tax, which is why they wanted to force retailers to collect it regardless of where they were located.

- The U.S. Supreme Court's ruling Thursday that states can require online retailers to collect sales tax on purchases made by their residents could be a boon for state and local budgets in the coming years. Instead, consumers were responsible for send states the necessary taxes - something that most people never do.

Nothing will change immediately after this ruling.

Chief Justice John Roberts, joined by Justices Stephen Breyer, Elena Kagan and Sonia Sotomayor, dissented.

The Supreme Court heard South Dakota v. Wayfair on April 17, and right out of the gate, the crux of the argument became apparent. The company maintains that it has been collecting tax in all 45 states which require it. The previous decision was Quill Corp. v.

He added that the online titan "has the necessary infrastructure to charge and remit sales tax across all the states, many of which have differing rates and regulations" but he suggested many small internet-based retailers do not.

Amazon.com and some other online retailers began collecting the 6 percent sales tax from MI in October 2015 under the state's Main Street Fairness Act.

More than 40 states had submitted testimony in favor of upholding the South Dakota law. That will open the door to more states passing laws similar to South Dakota's.

The Trump administration had urged the justices to side with South Dakota. "Big victory for fairness and for our country".

South Dakota concluded in 2016 that the explosion in online sales changed the market drastically.

Read Friday's Arkansas Democrat-Gazette for full details.

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