2018-06-22cnbc.com

The Supreme Court ruled Thursday that states now have the power to force online retailers to collect sales tax in states where they do not have a physical presence, reversing a ruling from 1992 in a 5-4 decision. The move also revives a 2016 South Dakota law that required large, out-of-state e-commerce companies to collect sales tax, one that big e-commerce players fought. Some online retailers, such as Amazon.com, currently collect state sales tax on products they directly sell but do not collect taxes from many of the independent sellers on the site.

The decision removes the sales-tax savings that consumers could reap by making purchases online instead of buying from local brick-and-mortar shops. Although the move does help to level the playing field for physical small businesses, it also places new burdens on small online retailers.

Some small business groups argue the decision will be burdensome and add to an already confusing tax structure. The nonpartisan Small Business & Entrepreneurship Council said the ruling will add stress for small businesses, the marketplace and internet entrepreneurs.

...

"The fact that small businesses must now act as tax collectors for thousands of separate state and local [jurisdictions] is outrageous."... "Unfortunately, this ruling makes sweeping changes to sales tax law, but provides nothing in the form of easing complexity and/or streamlining each states' processes."

The Supreme Court should have required some mitigating factor (such as the tax-collecting ability being based on having a certain amount of business in the state) to mitigate the Dormant Commerce Clause concerns. Now they've gone completely in the other direction purely out of apparent concerns for the big guys "getting away with it".



Comments: Be the first to add a comment

add a comment | go to forum thread