With Billions At Stake, Supreme Court Rules States May Tax Online Retailers

With Billions At Stake, Supreme Court Rules States May Tax Online Retailers

Louisiana is one of the states that can now collect taxes on retail sales over the internet after a Thursday morning ruling by the U.S. Supreme Court.

Kevin Lyons, spokesman for Texas Comptroller Glenn Hegar, said, "We welcome the court's ruling in this case and are now assessing any potential revenue impacts as a result of this decision as well as whether any rule changes or legislation might be required to achieve the benefits of the decision". That was before the surge of online sales, and states have been trying since then to find constitutional ways to collect tax revenue from remote sellers into their state. It passed a law requiring online retailers with $100,000 in sales of goods or with more than 200 transactions to collect and remit a sales tax. They added that the lack of sales tax was leading to "significant revenue losses", especially in states where a lack of income tax didn't give them many alternatives.

Attention shoppers: If you've been avoiding sales taxes online by shopping with retailers who don't have a physical presence in your state, that will be changing soon.

Brick-and-mortar retailers in states are required to collect taxes on a state's behalf. Online sellers that haven't been charging sales tax on goods shipped to every state range from jewelry website Blue Nile to pet products site Chewy.com to clothing retailer L.L. Bean. Chief Justice John Roberts joined Stephen Breyer, Sonia Sotomayor and Elena Kagan in the dissent.

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South Dakota was backed by President Donald Trump's administration in the case. After the decision was announced, shares in Wayfair and Overstock both fell, with Wayfair down more than 3 percent and Overstock down more than 2 percent. However, Alaska and Montana allow individual individual cities to collect local sales taxes, according to the Tax Foundation.

Taxes on TV services is not new.

On June 4, the last day of the special second session, Louisiana legislators rushed through a bill that used the same wording as a South Dakota law that was the subject to the constitutional challenge in the high court.

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