States can now force online retailers to collect sales tax

States stand to pocket billions as Supreme Court rules internet businesses must collect sales taxes

Three large retailers-Wayfair, Overstock and Newegg-do not, and South Dakota sued them for failing to collect taxes after the state's law went into effect.

E-commerce now makes up about 10 percent of US retail sales, according to the Commerce Department. North Dakota that restricts states from collecting sales tax from retailers without a physical presence in those states.

After Justice Anthony M. Kennedy, who wrote Thursday's majority decision, had said the court should reconsider the decision, South Dakota took up the challenge.

Alternatively, some people argue that the costs associated with being forced to comply with these new regulations could put some smaller retailers out of business entirely.

Anyway, that's that. Within a year or less, every state will collect sales tax on internet and mail-order sales. Forty-five of the 50 states impose sales taxes.

After states and traditional retailers have grumbled about this situation for years, South Dakota finally made a decision to do something to change it.




Brick-and-mortar retailers in states are required to collect taxes on a state's behalf.

States like South Dakota that depend heavily on sales taxes for their revenue are likely to benefit most, with a predicted maximum revenue increase of around 3 percent, according to a Barclays research note.

"Each year the physical presence rule becomes further removed from economic reality and results in significant revenue losses to the states".

As an example, lawyers for the online retailers told the high court that in IL, a Snickers bar costs more in taxes than a Twix bar, since food items containing flour are not treated as candy for tax purposes.

Amazon, which was not involved in the Supreme Court case, collects sales taxes on direct purchases on its site but does not typically collect taxes for merchandise sold on its platform by third-party venders, representing about half of total sales.

Related news:

Hot News

isis-killer-beheading-video-story-top Child detainees from border join others sent to Oregon
Jun 21, 2018 - 19:08
The Trump administration earlier this year began enforcing a policy that separated members of families that cross USA borders illegally.

isis-killer-beheading-video-story-top Sixers trade 39th pick in National Basketball Association draft to Lakers
Jun 21, 2018 - 19:00
This move has all of the signs of them potentially looking for something bigger, but a big deal might not fall into place. Leonard and head coach Gregg Popovich met earlier this week in an effort to possibly the mend the relationship.

isis-killer-beheading-video-story-top Ronaldo goal earns Portugal 1-0 victory over Morocco
Jun 20, 2018 - 19:23
He was too strong for marker Manuel Da Costa and found space in the goalmouth to meet Joao Moutinho's cross after a corner. The FC crew examine how Cristiano Ronaldo has adjusted his game with age to remain one of the world's elite players.

isis-killer-beheading-video-story-top Ten stats you might have missed from Japan v Colombia
Jun 19, 2018 - 23:11
Pekerman also subbed out experienced midfielder Juan Cuadrado earlier than anticipated in response to Sanchez's red card. It promises to be an interesting match as Colombia opening up their World Cup campaign with a matchup against Japan .

isis-killer-beheading-video-story-top China to retaliate after United States imposes tariffs on $50 billion in imports
Jun 19, 2018 - 23:09
Donald Trump has approved a plan to impose punishing tariffs on tens of billions of dollars of Chinese goods as early as Friday. The administration is leaving the door open to further tariffs on agricultural goods and other products.

isis-killer-beheading-video-story-top Trump misrepresents North Korea's actions
Jun 18, 2018 - 06:34
North Korea has perpetuated human rights abuses for decades. "You don't understand sarcasm", he told reporters . It is premature to say the threat posed has gone or that the summit has made a substantial change.

isis-killer-beheading-video-story-top Canada, US & Mexico joint bid wins right to host tournament
Jun 15, 2018 - 00:21
The 1994 World Cup , the only one played in the USA , was the most financially successful and best-attended tournament in history. Five times they have bid, and five times they have been overlooked - Morocco are perhaps destined to never host a World Cup.

isis-killer-beheading-video-story-top IHOP or IHOB? Online Followers Confused by Restaurant's New Campaign
Jun 13, 2018 - 19:18
Last week the International House Of Pancakes announced they were changing their name from IHOP to IHOb . While IHOP is best known for its breakfast food, the chain is open for breakfast, lunch, and dinner.

isis-killer-beheading-video-story-top FastStart on Xbox One will help you to play games faster
Jun 13, 2018 - 19:15
At E3 2018 , gamers took a deep dive on about ten games, including The Last of Us, Part II , Death Stranding and Spider-Man. Microsoft's executive president of gaming Phil Spencer says a gaming service accessible from any device is on the cards.

isis-killer-beheading-video-story-top Apple bans crypto-mining apps from all its platforms
Jun 13, 2018 - 19:06
These conditions extend to apps providing cryptocurrency futures trading, and other crypto-securities or quasi-securities trading. In 2014, Apple blocked an app by Blockchain which was concerned with bitcoin trading and storage on Apple devices.

isis-killer-beheading-video-story-top Tony Awards 2018: How to Watch, Who’s Presenting and More!
Jun 12, 2018 - 02:49
Drilling into the numbers, the live event was up a tiny 2.1% over the Kevin Spacey fronted 71 Tony Awards of June 11, 2017 . The show also won awards for its luminous lead actress, Katrina Lenk, and its director, book and score, among others.

isis-killer-beheading-video-story-top Pompeo downplays feud between United States and G7 allies
Jun 12, 2018 - 00:18
Similarly, Krueger said Trump was unlikely to take the countermeasures lying down and could hit back with more trade restrictions. On Sunday morning, two Trump economic advisers, Larry Kudlow and Peter Navarro , ratcheted up the bizarro rhetoric.

isis-killer-beheading-video-story-top U.S. soldier killed, five wounded in 'enemy attack' in Somalia
Jun 11, 2018 - 04:01
Conrad was killed and four other commandos were wounded Friday during an operation against the militants, the USA military said. It was the first known United States combat death in Africa since an ambush in Niger in October , the New York Times reports.

isis-killer-beheading-video-story-top The 'trend' that is troubling the US
Jun 10, 2018 - 05:27
Keep firearms and drugs out of the hands of those at risk are common sense, unless you don't know half of suicides were at risk. Suicide rates varied from 6.9 per 100,000 residents a year in the District of Columbia to 29.2 per 100,000 in Montana.

isis-killer-beheading-video-story-top Trump issues warning to trade partners over retaliatory tariffs
Jun 10, 2018 - 04:10
Trump is issuing a stern warning to foreign countries not to retaliate against U.S. tariffs on the imports of steel and aluminum. The other G7 leaders will meet without him for the rest of the day, discussing climate change and worldwide development.