SD may see lower rate after sales tax ruling

Posted June 24, 2018

Wayfair already collects and remits sales tax on approximately 80% of our orders in the United States, a number that continues to grow as we expand our logistics footprint.

In a blow to huge billion dollar online retailers such as Amazon and eBay, the Supreme Court has ruled that states can impose a tax on goods and services ordered online. The Supreme Court just ruled that states may force online retailers to collect sales tax on their behalf. "While we don't know how much this will specifically mean for our sales tax revenue, we are certain it will have a positive impact on our sales tax revenue".

Nebraska Retail Federation President Jim Otto applauded the ruling as a move that levels the playing field between brick-and-mortar stores, which collect sales taxes, and online retailers, which often don't.

This law affects IL shoppers that check out of shopping sites without paying sales tax, and the sites are now required to add them.

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"If sales tax was the only barrier keeping them from shopping local and then throw in you might to have pay shipping fee if you shop online, I think it's encouraging for local businesses", Wilson said.

Amazon has actually been long collecting state and local sales tax-but only for items it sells directly, which is about half of its business.

The former system was a competitive disadvantage to brick-and-mortar stores.

The original 1992 Quill vs North Dakota case related to mail-order catalog purchases.

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According to a federal report, the Supreme Court's decision could see states netting around $13 billion in taxes annually. The NRF had argued in a friend-of-the-court brief previous year that there's a wide variety of software available to automatically collect the sales tax owed.

The court decision could also be important in Florida because of the state's heavy reliance on sales-tax revenue.

As reported by CNET, the National Retail Federation, a trade group that includes numerous largest brick-and-mortar USA retailers, joined President Trump in hailing the decision as "a major victory". "SC already collects (sales tax) on 22 of the top 25 e-retailers".

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