Economy

Supreme Court rules states can force online retailers to collect sales tax

Supreme Court rules states can force online retailers to collect sales tax

Those companies - for example, Target - would not be impacted by Thursday's decision, he said.

In 2016, South Dakota Governor Dennis Dugerd said his state is losing about $ 50 million a year in sales taxes, as many online retailers are not physically in the state.

What it means for out-of-state retailers is that sales tax nexus is no longer exclusively based on a physical presence standard. "Rejecting the physical presence rule is necessary to ensure that artificial competitive advantages are not created by this court's precedents".

Governor Eric Holcomb said he wants to take a look at what the ruling will mean for IN, and the taxes collected here.

For those companies who don't have any offices, warehouses, etc.in a given state, it's been left to consumers to send the states the taxes on their purchases.

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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. But the tax is not applied to third-party sales through the Amazon network.

In a concurring opinion, Justice Clarence Thomas said that after ruling for the retailer in 1992, he had changed his mind.

The chamber is a long-time advocate for online sales tax collection.

Not all states are cheering the Supreme Court's ruling. Amazon who was not mentioned in the case does charge sales tax in states that impose it but only on products sold from their own inventory.

It's clear that the court's decision will mean extra cash for states.

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The high court decided that states have the right to mandate sales charges from retailers whether or not they have a physical location within the state.

He said the ruling was "good news, but it's not a windfall". In the brief, NRF cited a wide variety of software available to automatically collect the sales tax owed, much of its available free or at low cost.

For a better understanding of how the ruling could impact consumers and businesses in the Chicago area, reach out to local legal experts.

The 2017 law requires businesses to collect online sales tax if they make at least $100,000 per year or conduct at least 200 transactions in the state in a year. "Technology has also allowed for compliance with state tax laws to become a lot easier too", said Tax Commissioner Ryan Rauschenberger.

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