Supreme Court To Rule On Sales Tax Of Online Purchases

Share
Supreme Court To Rule On Sales Tax Of Online Purchases

North Dakota-established that states could only collect sales tax from a retailer with an established physical presence within their boundaries. However, GAO also estimated that untaxed online sales would make up just 2 to 4 percent of state and local sales tax revenue.

Still, the change in precedent could put a burden on small- and medium-size online retailers who will have to navigate up to 16,000 different taxing units, according to Wayfair, which wants the current rule should stay in place.

Online shoppers could pay more upon checkout if the U.S. Supreme Court overturns a 26-year-old rule on sales taxes.

Many smaller retailers don't; unless they have a physical presence in the state where the buyer lives.

A high-stakes showdown at the U.S. Supreme Court on Tuesday will determine whether states can force out-of-state online retailers to collect sales taxes in a fight between South Dakota and e-commerce businesses.

South Dakota depends more than most states on sales taxes because it is one of nine that do not have a state income tax.

Additionally, independent businesses on websites like Etsy and Ebay would be included in a rewritten sales tax law, as well as third party merchants that operate in Amazon's global marketplace, which totaled almost two-thirds of the company's gross merchandise volume at $313.4 billion.

"Win or lose at the Supreme Court, we will continue to advocate for a legislative solution and a level playing field where all retailers collect and remit sales tax on the same basis", Way fair spokeswoman Jane Carpenter said in a statement. "The entire nature of interstate commerce has changed", says Stephanie Martz, general counsel of the National Retail Federation, which has members such as Walmart Inc., Target Corp., and Amazon.

The Supreme Court is expected to issue a decision in June.

Online retailers said reversing the 1992 precedent is a negative move in terms of e-commerce. Amazon collects sales tax on its own products, but not on other businesses' products that are sold through its website.

"Those smaller retailers are now starting to see an ability to compete with the big guys like Amazon and Walmart", said Sam Cinquegrani, CEO of ObjectWave, a digital strategy and services firm.

Share

Advertisement

Related Posts

Coli outbreak traced to romaine lettuce
The farms in the Yuma, Arizona region supplies romaine lettuce to the country during March through November of each year. The lettuce may have been served at Panera Bread, according to an investigation of several illnesses in New Jersey.

HBO's John Oliver Says GOP 'Absolutely Blew It' on Corporate Tax Reform
That's down from 10 as of a year ago . " Last Week Tonight " airs Sunday nights at 11pm ET on HBO . Of the four remaining Blockbuster stores, three are in Alaska.

Prominent gay rights attorney dead after apparent self-immolation
According to the Times , authorities had removed Buckel's body by 11 a.m., leaving a black, circular patch. Stay up-to-date with the latest news, stories and insider events.

Tiger Shroff's Baaghi 2 rocks at BO, crosses Rs. 150 crore mark
Earlier, there was a strong buzz suggesting that Disha Patani and Tiger Shroff were dating each other and were in a relationship. The film is high on action and drama and qualifies to be called as a typical masala Bollywood potboiler.

OnePlus 6 Final Specs, Price, Features, Design, and Launch Date
The camera on the OnePlus 6 might carry the same type of sensor, but this will be improved with better image processing. What are you expecting from OnePlus? Needless to say, the display will have a notch at the top just like the iPhone X .

ZTE slapped with export restrictions by US Commerce Department
The five-year United States government investigation into ZTE's actions was first revealed in March 2016. ZTE officials did not immediately respond to requests for comment.

Turkey says not siding with anyone on Syria
Monday's court session will be attended by North Carolina senator Thom Tillis and US envoy for religious freedom Sam Brownback. Andrew Brunson, of Black Mountain, N.C., has spent 23 years living in Turkey with his wife, daughter and two sons.

Auto insurance premiums fall for third quarter in a row
Experiencing the biggest quarterly drop of 21% were City of London motorists, who now pay an average of £1,259. Costs for insurers have eased off after the government reformed laws to crackdown on whiplash claims.

Ed Sheeran Rumored to Appear in Upcoming Beatles-Themed Comedy Film
The Working Title/Universal Pictures film has a script from Richard Curtis , writer and director of Love Actually . Saturday Night Live standout Kate McKinnon is in talks with filming due to take place this summer.

Virginia State Police investigating small-plane crash in Albemarle County
A memorial service has been held in Las Vegas for one of the six people killed in the fiery crash of a small plane in Scottsdale, Arizona.

© 2015 ExpressNewsline. All Rights reserved.