Illinois Shoppers Pay More for Online Purchases, Good News for Small Businesses

Illinois Shoppers Pay More for Online Purchases, Good News for Small Businesses

The U.S. Supreme Court ruled 5-4 Thursday states can order online retailers to pay sales taxes. Thanks to a 1967 Supreme Court ruling that said states couldn't force mail-order catalogs to collect sales tax unless that company had a physical location in the state, online retailers have been able to skirt the issue of collecting sales tax.

Soon after the South Dakota law passed, South Dakota took it to court with retailers Newegg, Wayfair and Overstock, alleging that the companies failed to comply with their state sales tax laws.

For readers of our site, one of the biggest implications this ruling will have is on B&H.

The decision allows states to require out-of-state businesses to collect sales tax from customers in other states - for example, a retailer in Utah who sells goods to a customer in NY would have to calculate and collect the NY sales tax.

"If you are a local business that also has an online presence and you have a sale in California or Georgia, you are going to have to invest in a software program or do a lot of bookkeeping because you are going to have to pay sales tax in every state that you ship too".

Do you agree or disagree with how the Supreme Court ruled in this case? Pointing to the company's ads, he wrote: "What Wayfair ignores in its subtle offer to assist in tax evasion is that creating a dream home assumes solvent state and local governments".

We asked some vendors of sales-tax services for their advice. "Regardless of how Americans shop for goods, whether that's on the internet or in our neighborhood small businesses, we must expect that all retailers face equal sales tax treatment".

"As to who will have to collect, once that case is decided, it seems their economic nexus definition, or what we are now referring to as a de minimus threshold for interstate commerce, which is any retailer with more than 200 transactions or $100,000 of sales into South Dakota over the trailing 12 months". Many small online sellers may use Amazon's platform as it will collect and remit sales tax for them. But it would affect the smaller business that exclusively have an online presence.

HBK's Tax Advisory Group (TAG) will provide updates about the decision as they become available.

Gisele was pretty pumped for Brazil’s dramatic World Cup win
Brazil is all of a sudden a monster matchup, while Switzerland can take advantage of an already eliminated Costa Rica to move on. Brazil only managed a 1-1 tie against Switzerland in the country's first game of the 2018 tournament.

Sales tax collection in Florida already has been evolving.

West Virginia Chamber of Commerce President Steve Roberts said Friday on MetroNews "Talkline" if state leaders chose to begin the collection, it could mean real money for West Virginia.

But to brick-and-mortar stores, the ruling righted a decades-old imbalance that favored internet retailers and led to the demise of thousands of merchants.

Walls think people understand the importance of keeping brick and mortar businesses for our communities.

This change is expected to boost revenue for the state and traditional main street businesses.

Businesses that aren't traditional retailers hope they'll get back lost sales.

"Vets all over the country have lost a lot of income for a long time", says Dr. John de Jong, owner of Newton Animal Hospital in MA and president-elect of the American Veterinary Medical Association.

In a previous statement before the overturning of Quill vs North Dakota, Rauschenberger said North Dakota was "missing out on up to $50 million in revenue each year".

Related Articles