NRF hails US Supreme Court sales tax ruling

NRF hails US Supreme Court sales tax ruling

For example, a business with one salesperson in each state must collect sales taxes in every jurisdiction in which goods are delivered; but a business with 500 salespersons in one central location and a website accessible in every state need not collect sales taxes on otherwise identical nationwide sales. The Supreme Court's 5-4 ruling in favor of the changes has now been equalized. In recent years, as internet sales have become an increasingly large part of commerce, states have become both creative and aggressive in defining what constitutes a "physical presence" for this goal.

The U.S. decision comes after continued battles between bricks and mortar retailers and online retail giants, which have turned the consumer retail market upside down in recent years. The ruling opens the door for MA and other states to collect sales taxes from on-line retailers.

Online retailers will have to deal with a hodgepodge system until Congress enacts a federal standard, which is unlikely this year given the midterm elections in November. "Current law in IL essentially says the tax collections are passed on to municipalities based on population" instead of being based on where a buyer lives, Moore said.

Second, the Court's decision now compels one party (the seller) to enforce a law the state claims another party (the buyer) is violating. Not only do most states impose some form of sales tax, but a number of local governments do, as well. Yet there are many instances in which web merchants don't collect the tax.

Until now, many sellers that have a physical presence in only a single state or a few states have been able to avoid charging sales taxes when they ship to addresses outside those states. In many states, they actually then placed that burden on the consumer.

South Dakota was anxious about lost sales tax revenue.

IL consumers can expect to pay more when shopping online after the U.S. Supreme Court ruled that states have the authority to require out-of-state online retailers to collect sales taxes.

Brexit marchers demand final vote on departure
A spokesperson said the business department was speaking with officials from the aerospace giant on Friday. BMW makes the Mini and Rolls-Royce and employs about 8,000 people in Britain.

"This simplifies life for retailers and for consumers and it levels the playing field for retailers and their internet competitors", Karr said. Justice Anthony M. Kennedy said the Quill decision could be causing states to lose tax revenue of up to $33 billion annually. It also said that it is no longer possible to defend the physical presence requirement from the point of view that its removal would create undue administrative burdens on out-of-state vendors and disrupt inter-state commerce, given the technology that makes remote online sales possible. When Wayfair, Overstock.com, and Newegg balked, the state sued them, leading to Thursday's ruling in the case that became known as South Dakota vs. Wayfair.

Kennedy didn't directly decide whether states could try to collect taxes retroactively, but he said the issue wasn't a reason to keep the physical-presence rule.

The Supreme Court judges agreed that the South Dakota sales tax law is lawful and discussed whether an out-of-state seller can be held responsible for the payment of sales tax under the Commerce Clause of the United States Constitution, which was created to prevent states from engaging in economic discrimination.

In writing for the minority, Chief Justice John Roberts ruled that the issue should be decided by Congress rather than the courts.

As for the argument about the impact on smaller online merchants, Shearman said mom-and-pop stores are the ones that have been disadvantaged in the 26 years since Quill. Now, rivals will be charging sales tax where they hadn't before. The law was a direct challenge to the Court's 1992 decision in Quill, requiring a physical presence.

The Trump administration had urged the justices to side with South Dakota.

Related Articles

  • 28-year-old socialist upsets 10-term Congressman in NY Democratic primary

    28-year-old socialist upsets 10-term Congressman in NY Democratic primary

    She recalls walking through the George Sherman Union with Ocasio-Cortez and joking with her about "when you're president one day". Ocasio-Cortez fended off the loaded question and praised candidates she believes are doing things right.
    LeBron James contacts Kevin Durant about leaving Golden State Warriors

    LeBron James contacts Kevin Durant about leaving Golden State Warriors

    As far as I'm concerned LeBron James is a big time player but the way I look at it I should be perceived as the best in the world. Durant said earlier in the month that he was planning on re-signing with the Warriors.
    Korea Knocks out Germany in 2-0 Upset

    Korea Knocks out Germany in 2-0 Upset

    Faces of defeat: Germany fans in Berlin watch on in horror as the defending champs are eliminated from the Fifa World Cup . Sweden , powered by their own terrific performance, and Mexico , powered by South Korea , were through.
  • Kurdistan PM congratulates President Erdogan on election win

    Kurdistan PM congratulates President Erdogan on election win

    AK Party supporters clogged a main road in the capital Ankara leading to party headquarters honking horns in celebration. More than 110,000 government workers have also been dismissed under a state of emergency after the coup.
    Flight attendants exposed to greater risk of cancers

    Flight attendants exposed to greater risk of cancers

    The study was only based on the health impact the cabin crew had due to their profession and not on the airline passengers. The sample group was more than 80 percent female and had an average tenure of 20 years, with 91 percent actively employed.
    Rep. Joe Crowley upset in stunning NY Democratic primary loss

    Rep. Joe Crowley upset in stunning NY Democratic primary loss

    She recalls walking through the George Sherman Union with Ocasio-Cortez and joking with her about "when you're president one day". For example, she held back during Elmore's weekly forums to hear others speak before sharing her views, Fernandez remembers.
  • England, Belgium battle for top spot after Germany World Cup shock

    England, Belgium battle for top spot after Germany World Cup shock

    Thursday's huge 2018 World Cup Group G clash between England and Belgium will be broadcast on NBCSN at 2 p.m. England will be looking to top a World Cup group for a sixth time in their history.
    Amazon acquires pharmacy startup PillPack; purchase price thought to be near $1b

    Amazon acquires pharmacy startup PillPack; purchase price thought to be near $1b

    Parker and Elliot Cohen through the Massachusetts Institute of Technology's Hacking Medicine initiative. In premarket trading, shares of drugstore chains Walgreens, CVS and Rite Aid slid.
    Holders Germany knocked out of World Cup 2018

    Holders Germany knocked out of World Cup 2018

    Though the referee first ruled the goal offside, it was quickly changed thanks to the Video Assistant Referee (VAR) system. After South Korea's two losses to Mexico and Sweden , fans back home unleashed a wave of vitriol on the entire team.
  • Will the center hold when Justice Kennedy retires?

    Will the center hold when Justice Kennedy retires?

    But in his final term on the court, Kennedy passed on the opportunity to do something about partisan gerrymandering. He dismissed tools developed to evaluate the severity of gerrymandered maps as "sociological gobbledygook".

    Jan Vertonghen 'relishing' World Cup clash with Tottenham teammate Harry Kane

    If they are lucky enough to advance to the semi-final, they will be greeted by one of France, Argentina, Portugal or Uruguay. But Southgate did concede he would probably make some changes for a clash that neither side needs to win.
    Turkey arrests 12 for ‘cursing Erdogan’ before opposition rally

    Turkey arrests 12 for ‘cursing Erdogan’ before opposition rally

    For the first time since 1977 a social democrat politician won more than 30% of the vote in Turkey. Erdogan and his AK Party say the measures are necessary to combat threats to national security.