A new Supreme Court ruling today paves the way for consumers to pay more online sales taxes, creating a more level playing field for brick and mortar retailers.
The Court ruled that states can require online shoppers to pay sales tax even if the retailer has no physical presence in the state.
The Court sided with South Dakota, which recently passed a law imposing an Internet sales tax.
A majority opinion written by Justice Anthony Kennedy said that brick and mortar businesses were at a disadvantage because they have to charge sales taxes while Internet retailers don’t. The new ruling, he said, puts retailers on an even playing field.
Larger retailers must abide by the new ruling, although smaller retailers, such as those selling on eBay, will not be required to follow the new law.
Amazon, which owns a 44 percent share of the US e-commerce market, already pays taxes in all states but five including Alaska, Delaware, Montana, New Hampshire and Oregon.
NBC News reported that South Dakota said states could gain a combined $34 billion a year if the court allowed them to tax Internet sales. But the General Accounting Office estimated that the number would be at most about $13 billion.
Source: NBC News, New York Times
It’s a nice start!
People are too impatient to wait two weeks to save sales tax. Alibaba isn’t a major threat IMO.
China will applaud that decision. Buying directly from alibaba, becomes a no brainer option now.
What about International buys, will there be any field leveling for them ? Either you charge sales tax on all purchases or none at all.
Oh wait, China can claim any value on the package after all….
Yes! Finally!