Supreme Court clears way for states to collect online sales tax

Yuri Gripas  Reuters

Online shoppers could find costs going up after the Supreme Court did away Thursday with a decades-old precedent limiting the ability of states to collect sales tax on certain out-of-state Internet purchases.

In making their decision, justices ruled that South Dakota can collect sales taxes from online retailers like Wayfair, which brought the suit.

Strategic Resource Group's Burt Flickinger on the Supreme Court ruling that states can collect sales tax on out-of-state purchases.

"Each year, it becomes further removed from economic reality and results in significant revenue losses to the States". 106, §5. Third, South Dakota is one of more than 20 States that have adopted the Streamlined Sales and Use Tax Agreement.

"Prior to today, Quill required that, to force out-of-state retailers to collect tax on sales to residents of the state, the out-of-state retailer had to have a physical presence in the state", said Jon Barooshian, a partner at law firm Bowditch.

At issue was the court's 1992 decision in Quill v.

"Startups and small businesses may benefit from the physical presence rule, but here South Dakota affords small merchants a reasonable degree of protection", the ruling says.

Woman yelling Allahu akbar slashes two with blade in France
The woman hit the visitor of shop Leclerc chest with a knife, then attacked the cashier, who was slightly injured. A search of the woman's home was underway to know whether "she has links or not with Daesh", said BFMTV .

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

"Correctly calculating and remitting sales taxes on all e-commerce sales will likely prove baffling for many retailers". "This was the right case and the right time for the Court to act, and we couldn't be more pleased with the outcome".

But sellers that only have a physical presence in a single state or a few states could avoid charging customers sales tax when they're shipping to addresses outside those states.

Only five states do not collect a statewide sales tax. 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.

Some states will still have to pass new legislation to demand tax from out-of-state orders, and that isn't always guaranteed.

South Dakota has estimated that it could take in up to $50 million a year in additional revenue with these taxes being collected.

Related news:

Hot News

isis-killer-beheading-video-story-top Elon Musk Reckons A Saboteur Has Been Dicking Around With Tesla Production
Jun 20, 2018 - 01:41
Musk did not indicate how the company had discovered the alleged saboteur, or if any legal action had been taken against him. Musk listed "oil & gas companies" and "Wall Street short sellers" as being among the company's potential enemies.

isis-killer-beheading-video-story-top Mexico coach spots weakness in Germany's defense
Jun 20, 2018 - 01:31
The Los Angeles FC player wrote in a message that his grandfather had watched El Tri defeat Germany . Spain lost their first game at the 2010 World Cup but went on to win the tournament outright.

isis-killer-beheading-video-story-top All 5 first ladies speak out against family-separation immigration policy
Jun 20, 2018 - 01:17
Goodlatte is chairman of the House Judiciary Committee and a key player on immigration legislation before the House this week. Laura Bush , the former first lady of the US , expressed her rejection of the policy.

isis-killer-beheading-video-story-top Why Jose Mourinho is fuming about Liverpool's EPL fixture list
Jun 20, 2018 - 00:42
Pep Guardiola's Manchester City are huge favourites to win the league next season after they strolled to the title this year. The longest winless run on opening day for a Premier League team has also been passed on from last season.

isis-killer-beheading-video-story-top Trump proposes new tariffs on $200B worth of Chinese goods
Jun 20, 2018 - 00:42
In 2017, the U.S. trade deficit with China was a record $375.2 billion, but that did not include services. By slapping tariffs on trade between the two nations, Bardole says both countries are going to feel pain.

isis-killer-beheading-video-story-top Powerful quake shakes Osaka, Japan
Jun 18, 2018 - 15:32
Minoru Yasui, an 80-year-old resident of Osaka's Higashiyodogawa Ward, was killed after a wall collapsed over him. The Meteorological Agency warned, however, that aftershocks could be felt over the next two to three days.

isis-killer-beheading-video-story-top U.K.'s Theresa May Is Cornered by Brexit Enemies
Jun 18, 2018 - 15:31
Asked if voting against the government could eventually bring it down, Grieve said: "We could collapse the government". Tory rebels have admitted they could " collapse the Government" if they vote against Theresa May's final Brexit deal.

isis-killer-beheading-video-story-top Neymar not fully fit for Brazil opener
Jun 18, 2018 - 15:28
The day begins in Samara, about 650 miles (1,050 kilometers) east of Moscow, with the other teams in the deep Group E. Sunday's first game sees the 2014 World Cup's most surprising team Costa Rica take on Serbia in Samara.

isis-killer-beheading-video-story-top At Least 4 Feared Dead in Texas Border Crash
Jun 18, 2018 - 14:59
Four people were pronounced dead at the scene near Highway 85 about 100 miles southwest of San Antonio , ABC News reports . One of the drivers attempted to flee the scene and was chased by agents, US Border Patrol said in a statement .

isis-killer-beheading-video-story-top Robbie Williams kicks off World Cup with obscene gesture
Jun 17, 2018 - 18:51
He said when his performance at the ceremony was announced on Monday that it was "a boyhood dream" and would be "an unforgettable show".

isis-killer-beheading-video-story-top Feds pieced together Trump fixer Michael Cohen's shredded documents, retrieved encrypted texts
Jun 17, 2018 - 18:48
In April, federal agents raided his hotel room, office and apartment, seizing electronic devices and troves of documents. Cohen wants to hire a lawyer who has a relationship with the USA prosecutor's office in Manhattan, the source added.

isis-killer-beheading-video-story-top 2 people fall 34 feet after roller coaster derails in Daytona Beach
Jun 17, 2018 - 18:39
As of 10 p.m., 10 riders total were rescued and six were sent to the hospital, according to the Daytona Beach Fire Department. It is also thought to be "40 years old" and was "purchased from a closed amusement park in DE at the beginning of 2012".

isis-killer-beheading-video-story-top 'Upskirting' law blocked by Tory MP
Jun 17, 2018 - 18:36
A Government spokesman said: "This behaviour is a ugly invasion of privacy which leaves victims feeling degraded and distressed". Martin's next step is to meet with Tory MP Lucy Frazer, along with Hobhouse and her lawyer Ryan Whelan to plan their next steps.

isis-killer-beheading-video-story-top Ronaldo And Messi's Record Against Iceland Is Truly Ridiculous
Jun 17, 2018 - 18:36
Iceland was indebted to Halldorsson for picking up a point, though, as he kept out Messi's spot-kick shortly after the hour mark. What is it about Lionel Messi and penalties? Lionel Messi missed a penalty to further compound Jorge Sampaoli's woes.

isis-killer-beheading-video-story-top World Cup Nigeria Super Eagles Gernot Rohr team selection
Jun 15, 2018 - 12:38
Dalić has opined that Nigeria have the same playing style as West Africans Senegal, whom they beat in their last pre-World Cup friendly.