Supreme Court rules that internet sales can be taxed by states

Supreme Court rules that internet sales can be taxed by states

The Minnesota Revenue Department said its staff is "analyzing the court's decision" and will provide guidance to retailers within 30 days. Residents are now obligated to pay a use tax on out-of-state online purchases.

At local businesses like Garnet and Gold, ownership says this decision creates a more level playing field.

The tax is 6.25 percent. The ruling reversed a 1992 court decision that held online retailers could only be required to collect and remit sales taxes if they had stores or some other "nexus" in states.

President Trump called the decision a "big victory for fairness" in a tweet posted Thursday afternoon.

More news: Starbucks pulling the plug on 150 underperforming stores

Some retailers argued it's unreasonable to expect businesses to monitor and comply with sales tax regulations in parts of the country where they have customers, but no operations. Estimates of how much money the states are losing vary dramatically, ranging from more than $200 billion over five years to a recent estimate from the Government Accountability Office of between $8 billion and $13 billion per year. Indeed, Amazon had been in favor of online sales tax collection.

Sen. Tom Briese of Albion said he plans to introduce an Internet sales tax bill next year that would direct the additional dollars into property tax relief.

That's even though Floridians already are technically supposed to pay sales tax on online purchases. Justices Ruth Bader Ginsburg, Clarence Thomas, Samuel Alito and Neil Gorsuch joined his opinion.

And the state would likely see a $20 million per year revenue boost by levying such a tax, according to a Legislative Finance Committee analysis.

More news: Excessive gaming is now a mental health disorder

The state Department of Finance could not say how much NY was losing under the old ruling - or when it would enact new regulations to take advantage of the new ruling.

The governor also expressed gratitude for some online retailers, including Amazon, which "already have agreed to collect Oklahoma sales tax on items sold directly through their companies". "(They) pay property taxes, lease or own retail space, support their communities through charitable contributions and help their communities recover after natural disasters".

Big chains have been collecting sales tax nationwide because they typically have physical stores in whatever state a purchase is being shipped to. If a business had a physical presence in a state, then they could be forced to collect sales tax at the time of purchase.

Online shopping may be about to get more expensive. Still, almost half of Amazon's sales are through these other merchants, which could surely impact business. Etsy and eBay also leave it up to their individual sellers to collect taxes. That was due to an outdated Supreme Court decision on sales tax collection.

More news: Manchester United Reportedly Eyeing £60M Bid for Chelsea's Willian

Related Articles

  • Senegal and Japan fans help clean up stadiums following World Cup games

    Senegal and Japan fans help clean up stadiums following World Cup games

    In the World Cup, Japan became the first Asian team to win against a South American opponent by beating Colombia 2 to 1. A Japan-based football journalist, Scott McIntyre, told the BBC that cleaning up is "part of Japanese culture".
    Trump Hardens Stance on Family Separation Policy Amid Backlash

    Trump Hardens Stance on Family Separation Policy Amid Backlash

    At one point, a reporter from NY magazine, Olivia Nuzzi, played the tape ProPublica obtained from inside a U.S. After concluding his speech at Tuesday's business event, Trump hugged the American flag and thanked attendees.
    Minister: S. Korea 'flexible' on timing, format of ending Korean War

    Minister: S. Korea 'flexible' on timing, format of ending Korean War

    Trump had vowed to prevent that happening and threatened North Korea with "fire and fury like the world has never seen". But there was no mentioning the previous U.S. aim of "complete, verifiable and irreversible denuclearization".
  • Suarez sends Uruguay into last 16 with hosts Russia

    The 71-year-old Tabarez is the oldest coach at the tournament and also led Uruguay to the World Cup semifinals in 2010. That puts them in a must-win situation against Uruguay , favourites in Group A.
    Nets trading for Dwight Howard in National Basketball Association  stunner

    Nets trading for Dwight Howard in National Basketball Association stunner

    According to former player-turned-analyst Brendan Haywood, the Hornets locker room had just about had it with Howard's antics. The Nets will receive Charlotte's 45th overall pick in the 2018 NBA Draft and its 2021 second-round pick, per Wojnarowski .
    Stunned Germany pledge to bounce back from Mexico loss

    Stunned Germany pledge to bounce back from Mexico loss

    Defending World Cup champions have been finding it hard to get out of the group stage lately, and Germany is proving no exception. Mexico supporters outnumbered Germany fans at the Luzhniki Stadium and made nearly all of the noise, roaring their team forward.
  • San Antonio Spurs: Kawhi Leonard still ‘irate’ with Tony Parker’s comments

    San Antonio Spurs: Kawhi Leonard still ‘irate’ with Tony Parker’s comments

    Knowing Leonard won't re-sign with them in 2019 makes it hard for any other team to give up anything of value for Leonard. The Lakers have a strong nucleus and trading for PG-13 past year wouldn't have put them over the top.
    Meghan Markle 'upset' by Thomas Markle's interview about her wedding

    Meghan Markle 'upset' by Thomas Markle's interview about her wedding

    Thousands of racegoers cheered from the stands as the Queen's carriage let the procession to mark the start of Ascot . Now that Meghan Markle is officially part of the royal family , she'll be attending all sorts of lavish events.
    North Korea expected to begin transferring remains of U.S.  troops soon

    North Korea expected to begin transferring remains of U.S. troops soon

    Following the Singapore summit, China suggested the UN Security Council could consider easing the economic restrictions. A Kim trip to China to discuss his summit with Trump had been widely anticipated in diplomatic circles.
  • OPEC oil ministers gather to discuss production increase

    OPEC oil ministers gather to discuss production increase

    Some OPEC members back increasing output by the lower end of the 300,000 to 600,000 barrel a day range, one of the people said. As U.S. ally, they raised their production levels slightly to appease Trump and keep the prices from further rising.
    OPPO Find X Price Turns Out To Be Around RM 4600

    OPPO Find X Price Turns Out To Be Around RM 4600

    Smartphone buyers want full-screen phones but they don't like notches, and so the Oppo Find X takes a different route. However, Oppo claims that they have tested the slider for 3,00,000 uses, which they claim will last for five years.
    Ronaldo earns Portugal 1-0 win as Morocco's hopes end

    Ronaldo earns Portugal 1-0 win as Morocco's hopes end

    Ronaldo's fourth goal of the tournament and record 85th for Portugal separated the two sides in the end. Portugal looks well set to advance to the round of 16 while Morocco will certainly be going home.