US Online Shopping Is About To Get More Expensive

US Online Shopping Is About To Get More Expensive

US Online Shopping Is About To Get More Expensive

That won't necessarily be the case at Amazon, the world's largest online retailer, which already collects sales tax in every state that has such a tax.

"This decision paves the way for a level playing field throughout the industry". The Supreme Court decision is seen by many as a start to a solution for both issues. The ruling came on a 5-4 majority decision with Justices Anthony Kennedy, Clarence Thomas, Ruth Bader Ginsburg, Samuel Alito and Neil Gorsuch voting in favor, with John Roberts voting against along with Stephen Breyer, Sonia Sotomayor and Elena Kagan.

"In Florida, it is the buyer's responsibility to pay tax directly to the state; there's actually a (form for a) separate 6 percent tax for out-of-state purchases". Those retailers may face headaches complying with various state sales tax laws, though there are software options to help.

The state Department of Finance could not say how much NY was losing under the old ruling - or when it would enact new regulations to take advantage of the new ruling. Kennedy also said the previous ruling effectively created tax shelters for retailers. The ruling explicitly exempts smaller businesses along with all but the most successful of individual sellers using, say, eBay or other online sales channels. Such e-commerce businesses generally have not been required to collect sales taxes since the 1992 Supreme Court case, Quill v.


The Florida Retail Federation, which has long tried without success to get the Legislature to address the issue, hailed Thursday's decision.

Although consumers have in theory always been liable for paying sales tax to their state and municipality for online orders, the reality is very different. USA Today points out that most of the top 20 e-commerce sellers already collect sales taxes in most states because they have warehouses or local showrooms there or because state laws can successfully reach them. All Florida taxpayers will benefit from today's ruling, which will bring equity and fairness to Florida's sales and use tax. So it passed a law requiring all but the smallest retailers, including Internet companies, to collect taxes on the sales they make in the state, even if they had no physical presence there. Likewise, eBay now does not require sellers to collect state sales taxes.

Broader taxing power will let state and local governments collect an extra $8 billion to $23 billion a year, according to various estimates. "Any adjustment to those rules with the potential to disrupt the development of such a critical segment of the economy should be undertaken by Congress", Roberts wrote in a dissent joined by Justices Stephen Breyer, Elena Kagan and Sonia Sotomayor.

The case is South Dakota v. Wayfair, 17-494.

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