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

Donkey Kong Champ Stripped of Titles
Speaking to Old School Gamer Magazine , for which Mitchell serves as an advisor, he asserts that all will come to light. In a new statement, former Donkey Kong champion Billy Mitchell says there's proof he's still the King of Kong .

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.

Former Steelers OLB James Harrison Announces Retirement From NFL
Harrison signed a one-year contract with the New England Patriots at the end of 2017 and played in Super Bowl LII. Longtime Pittsburgh Steelers linebacker James Harrison is taking a second crack at retirement.

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.

Gwyneth Paltrow & Brad Falchuk Throw A Secret Star-Studded Engagement Party!
The Vogue cover girl was previously Wednesday to Coldplay singer Chris Martin, with whom she has two children - Apple and Moses. The 45-year-old actress showed off her enviable figure in one shot of her on the beach in Cabo smiling broadly at the camera.

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.

Man City Loses To West Brom As Man City Win Premier League
United pressurised West Brom with five minutes left to play but were struggling with the final ball in the last third. United lost 2-0 to Spurs when the two sides met in the Premier League at Wembley in January.

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.

Busey Trust Company Boosted Its Abbvie (ABBV) Holding; Noble Has 1.02 Sentiment
Following the transaction, the executive vice president now owns 133,026 shares of the company's stock, valued at $15,230,146.74. It dropped, as 42 investors sold ABBV shares while 695 reduced holdings. 448 grew positions while 139 funds amassed positions.

© 2015 ExpressNewsline. All Rights reserved.