Big chains have been collecting sales tax nationwide because they typically have physical stores in whatever state a purchase is being shipped to. The decision reverses a 1992 Supreme Court ruling in Quill vs. Physical stores have always had to charge sales tax, but many online retailers have been able to undercut them by ignoring sales tax.
"Local sellers are going to be protected, said Jon Hearst, President of the Retailers Association of MA". Few people actually comply.
In the wake of the ruling, companies like Amazon will have to keep an eye on how each state handles sales tax legislation and whether they will have to collect the funds on behalf of third-party sellers. The money will flow straight to the local or state governments; Minnesota alone could net between $132 million and $206 million in revenue annually, according to a U.S. Government Accountability Office report that analyzed 2017 figures. When it comes to online shopping, this resulted in the states missing out on a lot of tax when something was purchased from an out-of-state company.
MA law was similar to laws in several other states. The estimate represented between 2 and 4 percent of total state and local sales tax collections in 2016, the analysts said.
In the new case, South Dakota v. Wayfair, South Dakota had attempted to overturn that precedent, arguing that Quill was decided before the existence of internet commerce.
The exact impact of the ruling on Florida's sales tax collections is unknown but it could be significant.
Attorneys for Crutchfield Corporation could not immediately be reached. Besides the NRF, the National Sporting Goods Association and other retail trade groups had supported overturning the Quill decision.
Supreme Court clears way for states to collect...
Kaufman said he does not anticipate any legislative action either.
For those who tend to patronize the biggest retailers, the ruling may not make much of a difference. But it also means costs will go up for consumers and small online businesses might struggle with disparate tax rates around the country.
Under the ruling Thursday, states can pass laws requiring out-of-state sellers to collect the state's sales tax from customers and send it to the state.
Three identical bills were filed during the special session to match Louisiana's law with South Dakota's in case the U.S. Supreme Court allows...
"We put it in the budget because one of the concerns is that we would waste time and miss out on revenue should the decision come down", said Sen. Amazon already taxes items from its own warehouses. "Whereas mom and pop brick and mortar businesses were", Lesser said.