Internet sales tax ruling likely will cost consumers

Supreme Court rules states can force online retailers to collect sales tax

Amazon, eBay, and Etsy stock are tanking after Supreme Court sales tax decision

"The Internet's prevalence and power have changed the dynamics of the national economy", the court said in its decision in the case, known as South Dakota v. Wayfair.

The 2017 law requires businesses to collect online sales tax if they make at least $100,000 per year or conduct at least 200 transactions in the state in a year.

For those companies who don't have any offices, warehouses, a given state, it's been left to consumers to send the states the taxes on their purchases.

But on Thursday, the Supreme Court ruled in a 5-4 decision that states do have the right to collect sales tax from online retailers that do not have physical presences in their state.

CNET reports that this overturns a standing 1992 decision that prevented states from collecting sales tax from online retailers that had no physical presence in their state. Amazon, which accounts for more than 40% of online retail sales, already collects sales taxes on direct purchases from its site.

Bloomberg reported that the stocks of Amazon, Wayfair, Etsy, and eBay all fell following the ruling. However, this only applies to items from its own inventory, not those from third-party sellers.

Shopping online is about to get more expensive. Estimates are projecting states and local governments could pull in $8 billion to $23 billion a year in revenue.

The potential implications for IN and other states equate to millions of dollars IN tax revenue.

Five states - Delaware, Montana, Oregon, New Hampshire, and Alaska - do not have a state sales tax. "Most states still need to pass laws or issue regulations that will allow them to use the expanded tax collection authority the court just granted". According to the Chicago Tribune, Illinois can collect more sales tax thanks to a Supreme Court ruling on the matter. She says the court decision will "level the playing field for IL brick-and-mortar retailers". Legislators began considering going after Amazon when the company agreed to start paying the tax in other states, but not here.

The winners are local brick and mortar businesses, which will be able to compete pricewise with online retail giants.

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