SD may see lower rate after sales tax ruling

24 June, 2018, 23:38 | Author: Salvatore Jensen
  • Sales tax now can be collected on online purchases due to a ruling from the U.S. Supreme Court

Thursday's Wayfair Supreme Court decision could mean state legislatures can now force online retailers to start preparing for new rules in the sales tax world. That ruling held that a state can not require an out-of-state seller with no physical presence in the state to collect and remit sales taxes on goods the seller ships to consumers there.

With the larger sites having to pay sales taxes, smaller businesses have a bit more of an even playing field, especially if they have tech-savvy local marketing ads on Google and content-rich sites that attract prospective customers.

The decision allows states to require out-of-state businesses to collect sales tax from customers in other states - for example, a retailer in Utah who sells goods to a customer in NY would have to calculate and collect the NY sales tax.

The US Supreme Court ruled in favour of South Dakota.

Currently, online retailers that have a physical location in Georgia have to collect sales tax when Georgia shoppers use their websites.

States that rely more heavily on sales tax - as opposed to personal income tax, for instance - "are the big winners here and could see real budget gains if they follow South Dakota's example", said Fitch Ratings analyst Stephen Walsh.




For a better understanding of how the ruling could impact consumers and businesses in the Chicago area, reach out to local legal experts. Kennedy also noted the existence of software that "may make it easier for small businesses to cope" with compliance. The Quill decision, based on an interpretation of the Constitution related to interstate commerce, gave a boost to mail-order firms, which would have struggled with the paperwork burdens of collecting and remitting sales taxes nationally.

Ed Teisanu, a 39-year-old sales manager in Minnesota, doesn't think a new tax will change his buying habits, which is a mix of in-store and online.

EBay also said in a statement Thursday that Congress needs to "provide clear tax rules, with a strong small business exemption". In 2015, 72.5 percent of Tennessee's total tax revenues came from sales tax. "I don't have to drive", said Thornsberry. Kennedy wrote that the unfairness of the tax collection situation also could be an incentive to avoid opening storefronts or distribution centers in states such as Florida, just to avoid collecting the sales tax. Oklahoma has benefited to the tune of about $25.9 million, he said, while OKC has seen an increase of $4 million and Moore has netted about $320,344 in additional taxes. Retailers including Apple, Macy's, Target and Walmart, which have brick-and-mortar stores nationwide, generally collect sales tax from their customers who buy online.

"It really is a disadvantage to local brick and mortar stores".

A recent loosening of states' sales tax collection affects purchases of products online.

While almost impossible to determine how much revenue Johnson City or Washington County loses to online sales, state officials estimate Tennessee loses between $200 million and $450 million annually.

Recommended:



Popular

Optus Handing World Cup Group Matches To SBS After Total Failure
The company say that any customer who purchased an Optus Sport subscription for the World Cup will be provided a refund. Lew said the two-day deal with SBS was about creating a failsafe for its customers.

Alli remains a doubt for Panama clash
He added: "I made them out of edible paper and ink". "I think the lads will be used to the physical side of things from playing in the Premier League, the games we play each week are usually physical and I think that is something the lads enjoy".

Photo showing Melania Trump in 'don't care' jacket is real
Donald Trump , however, tweeted that his wife's jacket was indeed meant to send a message, but not about the immigrant children. After today's important visit to Texas, I hope this isn't what the media is going to choose to focus on".

Trump announces plans for Pentagon to create ‘Space Force’
National Security Strategy for 2017 named both Russian Federation and China as the primary threats to the U.S. According to CBS News , he announced this at the National Space Council Meeting at the White House.

In Reversal, President Orders Halt To Family Separation
Even though Trump has acted unilaterally to stem the family separations, lawmakers still prefer a legislative fix. Trump's opponents, however, were not satisfied with the executive order, asserting that this was not enough.

Neymar leaves Brazil training session limping on right ankle
At 23.30 pm, Brazil will clash with Switzerland and today's final match is between Croatia with Nigeria at 12.30 am. He had been playing keep-away with a few other players when he started showing signs of discomfort in his ankle.

Don't tie our hands, says United Kingdom govt, as Brexit debate begins
They said: "We have not, and will not, agree to the House of Commons binding the government's hands in the negotiations". Morgan said if a compromise amendment did not emerge, rebels could work with the Lords to ensure the changes took place.

Governor’s rule won’t affect ongoing military operations in J&K: Army Chief
In the successive meetings of the BJP and RSS, it was not only discussed but decided that the party must get out of alliance. Sitting at a roadside cafe on the Anantnag-Pahalgam road, Rashid said there was a governance deficit as well.

Instagram competes with YouTube, launches long videos
IGTV will automatically begin playing vertical videos from people that the user follows as soon as one log in. Instagram also announced that it now has a billion monthly active users, up from 800 million in September.

Dwight Howard headed from Charlotte Hornets to Brooklyn Nets
The 32-year-old Howard played only one season for Charlotte, averaging 16.6 points and 12.5 rebounds per game. Shortly after, Yahoo Sports' Shams Charania confirmed the deal and the pieces being flipped.