Supreme Court overrules 1992 sales tax decision

US Supreme Court Online shoppers can be forced to pay sales tax

US Supreme Court Online shoppers can be forced to pay sales tax

IN lawmakers anticipated the ruling in 2017 when they passed a law that imposed sales tax on companies that did at least $100,000 worth of business or more than 200 separate transactions in the state in a year. Matt bought has a Syracuse gnome thta he bought online, and since the store has no physical presence in Arizona, he didn't have to pay sales tax.

A United States Supreme Court ruling issued Thursday means Montana businesses may have to start collecting a sales tax when they sell their products online.

Many e-commerce giants like Amazon and Walmart already collect sales tax because they're so big they have a large enough presence throughout various states to collect sales tax.

The court held that its prior "physical presence rule" was "unsound and incorrect" and so prior decisions from 1967 and 1992 were both overruled.

The 1992 decision eventually gave a huge boost to out-of-state online retailers in that they received a consistent state tax subsidy with every sale that their in-state and local competitors - brick-and-mortar and online alike - did not receive.

For years, brick-and-mortar chains have complained of an uneven battlefield in the e-commerce wars, saying they had to charge and collect sales taxes everywhere while e-commerce rivals did not, except in states where they had a physical presence such as a distribution center or a store. "Each year, it becomes further removed from economic reality and results in significant revenue losses to the States".

Chief Justice John Roberts offered the dissenting opinion, along with Justices Stephen Breyer, Elena Kagan, and Sonia Sotomayor.

Broader taxing power will let state and local governments collect an extra $8 billion to $23 billion a year, according to various estimates.

But the Supreme Court ruled that the previous court case was no longer relevent in the modern broadband era.

Yesterday, the Supreme Court decision in Wayfair v. "This decision finally levels that playing field, and I think that's all any business wants".

Industry commentator, author and self-proclaimed retail prophet, Doug Stephens, used his Twitter account to say the decision "ironically, will make Amazon even more powerful and potentially kill smaller eCommerce players".

Now it's up to Congress to figure out a system for interstate commerce that's simple enough for small businesses to manage while still allowing states to determine how taxes will be collected.

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.

For the many third-party sellers on Amazon's platform, it's more of a gray area.

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