US Online Shopping Is About To Get More Expensive

The Supreme Court rules against Wayfair and other online retailers and overturns ban on the collection of online sales taxes. Jenny Kane  AP

The Supreme Court rules against Wayfair and other online retailers and overturns ban on the collection of online sales taxes. Jenny Kane AP

The Supreme Court ruled today states can now require online retailers to pay sales tax. South Dakota law, the focus of the court ruling, requires online retailers with more than $100,000 in annual sales to collect taxes. A key sticking point for New Hampshire lawmakers has always been that the state's businesses remain exempt from any nationwide requirement.

The 5-4 ruling called the current rules "unsound and incorrect". "Consumers are going to be following the same rules no matter where they be".

Hearst said MA shoppers who want to avoid paying a state sales tax, travel to New Hampshire.

The win was welcomed by groups representing brick-and-mortar retailers and decried by e-commerce advocates.

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South Dakota brought the lawsuit against major online retailers for failing to comply with its new sales tax law, in an effort to get the Supreme Court to revisit the Quill decision.

"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. Why should Granite Staters be so particularly concerned?

Legislators' focus would be on getting the full benefit of the sales tax - including sorting out how to ensure that the higher sales taxes in the Northern Virginia and Hampton Roads regions for transportation projects are properly applied - and on dividing up the millions in expected new revenue each year, Layne said. And as Sen. Maggie Hassan noted Thursday, that is an advantage the state isn't keen on losing. Many have argued the status quo left those businesses at a disadvantage since many online retailers could offer lower prices without the sales tax tacked on. He continued to write "the rule produces an incentive to avoid physical presence in multiple states".

Amazon adds the fee for all items it sells directly, though an estimated 52 percent of its sales come from third-party vendors not required to remit taxes.

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South Dakota was backed by 35 states in the case, each of which filed an amicus brief in support of online sales tax.

(OSTK, defendant in the Supreme Court case) -7.1%.

Justices Anthony Kennedy, Clarence Thomas, Ruth Bader Ginsburg, Samuel Alito, and Neil Gorsuch delivered the opinion while John Roberts, Stephen Breyer, Sonja Sotomayor, and Elena Kagan dissented. "The Internet's prevalence and power have changed the dynamics of the national economy", he wrote in the majority opinion.

With this ruling look for more states and local governments to push for taxes on online physical and digital sales. 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. "Now estimates range from $8 to $33 billion".

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"I think that's great", Andy Cohen, owner of Barkley's Gourmet Marketplace, a small pet supply shop in Flemington, New Jersey, told LifeZette. For decades, these sales tax laws were only applicable on purchases that were made from retailers who had a physical presence within that state. "Issues regarding smaller mom-and-pop retailers, and the amount of sales necessary to impose the collection obligation on them, would be decided on a case-by-case basis", he said.

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