Supreme Court rules that states can collect sales tax from online retailers

Sales tax now can be collected on online purchases due to a ruling from the U.S. Supreme Court

Sales tax now can be collected on online purchases due to a ruling from the U.S. Supreme Court

Online shopping may soon be a little more expensive.

"It remains to be seen what the exact fiscal impact of this (court) decision will be", said Rick Reames, a former head of the state's Revenue Department.

The high court ruled Thursday to overturn those decisions. In particular, Chief Justice John Roberts Jr. noted that numerous largest online retailers, including Amazon and eBay, were already collecting sales taxes for the states voluntarily.

In the end, Kennedy prevailed, writing the opinion for the majority and acknowledging that even the court's longtime precedents needed to adapt to modern reality.

Kennedy wrote, "The rule produces an incentive to avoid physical presence in multiple States". North Dakota, that states could not extend their taxing authority to companies that had no stores, warehouses or "physical presence" within the state.

"I think the bigger worry though for businesses here is if these states will come back for back taxes", he said. That position was to target huge retailers, without hitting smaller shops who sell their wares through eBay and Amazon.

The Supreme Court's 5-4 decision overruled a 1992 ruling that found the Constitution didn't allow states to require businesses to collect sales taxes unless they have a substantial connection to the state.

Sales tax collection in Florida already has been evolving. Dubbed the "Amazon tax", the policy went into effect in July 2017.

At this point, we can only begin to speculate about the changes. But paying online sales tax is nothing new, especially if you buy from large stores like Amazon, Walmart, Dell, and so on. The burden fell on the consumer to report their online purchases when filing taxes.

Quill stated that USA states could only change sales taxes on companies with a physical presence in the state. The ruling could easily improve revenue in states that have taken a hit from online sales.

"We have to help our local communities keep local businesses healthy so that cities and towns can fund core services", Fallin said in a prepared statement. Brick and mortar retailers and state lawmakers have been lobbying for decades to reverse a 1992 ruling in Quill Corporation v.

The court held that its prior "physical presence rule" was "unsound and incorrect" and so prior decisions from 1967 and 1992 were both overruled. Roberts wrote that Congress, not the court, should change the rules if necessary. Dissenting from the decision, Chief Justice John G. Roberts Jr. wrote: "E-commerce has grown into a significant and vibrant part of our national economy against the backdrop of established rules, including the physical-presence rule".

"We are a state, we're most famous for having one of the most complicated and quite frankly, screwed up sales tax systems in the United States", McCarthy said.

The Georgia General Assembly enacted the state law this year, in anticipation of the Supreme Court's decision. Sen.

Últimas noticias