Supreme Court rules states can force online shoppers to pay sales tax

US Supreme Court Rules States Can Tax Online Sales

The court overturned a longstanding rule that states can collect sales taxes only on transactions if the retailer has a "bricks and mortar" presence in that state.

The Supreme Court on Thursday ruled that states can collect sales tax from all retailers, even if those retailers do not have a "physical presence" in their state - ultimately paving the way for states to collect sales tax from online retailers.

In a blow to huge billion dollar online retailers such as Amazon and eBay, the Supreme Court has ruled that states can impose a tax on goods and services ordered online.

However, under the new ruling, NY consumers would have to pay sales tax even though Newegg has no physical storefront in the Empire state.

Justice Anthony Kennedy wrote that the previous decisions were flawed. In a note Thursday, Goldman Sachs analyst Blake Taylor said that most major retailers already pay sales taxes online and states may be slow to pursue the small number of retailers that do not yet do so. "There is a chance here that it raises prices for consumers by passing on this tax increase".

The New York State Department of Finance says it's reviewing the decision, so it's unclear when our 8.875% sales tax will officially kick in. For instance, the tax now could be collected from S.C. shoppers who shop online at outdoor retailer L.L. Bean. This was due to 50 years' worth of legal rulings which prevented states from charging sales tax on purchases made from out-of-state retailers.

You will soon likely be paying more in taxes for online purchases.

Vettel penalised after colliding with Bottas in French GP
This is a big gain and we really need it". "Really excited to be back for the first grand prix at Paul Ricard in a long, long time".

England beat South Africa by 121 runs
They surpassed Australia's total of 209/4 recorded against England during the Tri-Series final held in March this year. Incredibly, the record had been broken by New Zealand just hours before, as they made 216 on the same ground.

Brexit supporters urge Theresa May to walk away without European Union trade deal
The protest is part of a "summer of action" by campaign groups created to increase pressure on Theresa May and Jeremy Corbyn. Emily Hill, 55, told AFP she was "very much in favour of letting the people" confirm they really want Brexit.

Legislation to begin collecting online sales tax beginning July 1 was blocked by a filibuster earlier this year. Thursday's decision overturned that ruling, saying that the omnipresent nature of internet commerce calls for an updated tax structure.

Amazon isn't the only Seattle company indirectly impacted by the Supreme Court decision. In other words, the plaintiffs have one more opportunity to make any other Commerce Clause challenges to the law (aside from physical presence) and until we know what they opt to do, enforcement must wait. "The main issue is the competition between online retailers and brick and mortar retailers", Miller said.

But NetChoice, a trade association for e-commerce firms, warned small businesses would have trouble complying with the different tax requirements in each state. That software, too, can be an added cost. The lineup of justices on each side of the case was unusual, with Roberts joining three more liberal justices and Ginsburg joining her more conservative colleagues. "The Internet's prevalence and power have changed the dynamics of the national economy", he wrote in the majority opinion. Marketplace sellers weren't previously required to automatically collect sales tax on their sales, and the ruling may hurt their sales.

Big Supreme Court win on internet sales tax - about time!

In a statement, Wayfair said it did not expect the ruling to have "any noticeable impact on our business", since it already collects state taxes on roughly 80 percent of orders.

Stocks of online retailers were down significantly immediately following the ruling. Shares in large chains with more stores traded higher.

Related news:

Hot News

isis-killer-beheading-video-story-top Hawkish hold from Bank of England boosts sterling
Jun 24, 2018 - 21:20
On the one hand, it was another "business as usual" meeting with a majority of the nine BoE voters backing no change to interest rates.

isis-killer-beheading-video-story-top Historic Honda rescues Japan in four-goal Senegal thriller
Jun 24, 2018 - 21:18
Japan failed to deal with a right-wing cross with Genki Haraguchi nodding the ball straight to Senegal defender Youssouf Sabaly in the box.

isis-killer-beheading-video-story-top Greece heads for bailout exit after deal with creditors
Jun 24, 2018 - 21:13
It argued that the government failed to achieve high growth rates, which were the only way to alleviate the country's problems.

Mexico Sinks South Korea, Stay Perfect At 2018 World Cup
Jun 24, 2018 - 20:46
Son Heung-min pulled one back for South Korea in stoppage time with a spectacular left-foot strike from outside the area. It's the 50th career worldwide goal for Hernandez, known as "Chicharito".

isis-killer-beheading-video-story-top Kushner says will publish Mideast plan 'soon,' newspaper says
Jun 24, 2018 - 20:23
Abbas cut communications with the Trump administration after it recognised Jerusalem as the capital of Israel in December 2017. Most experts question whether Kushner and Greenblatt, both of whom had no prior diplomatic experience, can achieve any deal.

isis-killer-beheading-video-story-top New Zealand's Prime Minister has given her newborn daughter an Irish name
Jun 24, 2018 - 19:10
However the couple chose "Te Aroha" quite quickly, as it reflected the love their baby had been shown before her birth, she said. Ardern has had little sleep over the past few days, with the baby also described as being "very alert and one hungry baby".

isis-killer-beheading-video-story-top Brazil’s best to worst v Costa Rica
Jun 24, 2018 - 18:51
Brazil coach Tite has admitted Neymar could need five games under his belt to get back to his best. The dream - no, the OBJECTIVE - is still alive.

isis-killer-beheading-video-story-top Is Meghan Markle already pregnant?
Jun 24, 2018 - 18:26
Meghan's wedding dress was designed by Givenchy's Clare Waight Keller, who said that it was "truly an honour" to create her dress of dreams.

isis-killer-beheading-video-story-top Blue Jays Pitcher Roberto Osuna Suspended for Domestic Violence Incident
Jun 24, 2018 - 17:29
The 23-year-old Osuna is 0-0 with nine saves and a 2.93 ERA in 15 games this season. Blue Jays manager John Gibbons spoke on the suspension before Friday's game.

isis-killer-beheading-video-story-top Nick Kyrgios simulates sex act during Queen’s Club loss to Marin Cilic
Jun 24, 2018 - 15:38
He traditionally opts to play only exhibition matches before Wimbledon , but the lawns of Barons Court have proved reinvigorating. Now the former US Open champion is hoping to go one better after losing the Queen's final to Feliciano Lopez 12 months ago.

isis-killer-beheading-video-story-top Germany boss Joachim Low denies gestures to Sweden bench
Jun 24, 2018 - 14:45
Germany's task was made more hard when key defender Jerome Boateng was sent off in the 82nd minute for a second yellow card. Mexico's victory, coupled with Sweden's win over South Korea, has left the world champions with no margin for error.

isis-killer-beheading-video-story-top Greece's creditors reach deal on debt relief measures
Jun 24, 2018 - 13:12
"It took a bit longer than we expected, but ended in a very good way", Greek Finance Minister Euclid Tsakalotos said . According to the source, Eurogroup ministers agreed that the final loan tranche to Greece will total 15 billion euros.

isis-killer-beheading-video-story-top Messi is not a leader, he is no Ronaldo, claims Petit
Jun 24, 2018 - 13:08
Despite the uncertainty, Simeone said he had not given up hope that Argentina may yet survive into the knockout stage. "I've never seen a performance like this by Argentina ".

isis-killer-beheading-video-story-top Germany: Merkel's Bavarian allies critical on euro budget
Jun 24, 2018 - 11:14
Italy's new government has banned on NGO migrant rescue ships from docking at its ports and urged Malta to take in the Lifeline. German Chancellor Angela Merkel speaks during her visit to the German Jordanian University near Madaba, Jordan June 21, 2018.

isis-killer-beheading-video-story-top 'Game of Thrones' co-stars Kit Harington, Rose Leslie wed
Jun 24, 2018 - 11:07
Leslie was born to a noble family in Scotland and was raised at Lickleyhead Castle, her family's 15th century ancestral seat. Clarke layered a pink coat over a leaf-printed pink dress, which she wore with slingback Dior pumps and a white handbag.