Supreme Court closes online sales tax loophole

CNET reports that this overturns a standing 1992 decision that prevented states from collecting sales tax from online retailers that had no physical presence in their state. For decades, these sales tax laws were only applicable on purchases that were made from retailers who had a physical presence within that state.

For the full story, head on over to CNN Money. States were missing out on around 25 percent of the tax from online sales, according to the Government Accountability Office, meaning $13 billion in missed sales.

The Trump administration backed South Dakota in the case, arguing that no one could have foreseen how rapidly e-commerce would expand. South Dakota expects to collect another $48 million to $58 million in taxes a year because of this ruling.

The decision provides clarity that could lead to Congress passing legislation to create uniform national rules for collecting state taxes, to avoid a hodgepodge of individual state rules that would make the tax collection especially onerous for small e-commerce businesses.

Quill imposes the sort of arbitrary, formalistic distinction that the Court's modern Commerce Clause precedents disavow in favor of "a sensitive, case-by-case analysis of purposes and effects". But those rulings applied mostly to mail-order catalog companies.

"Attempts to apply the physical presence rule to online retail sales are proving unworkable".

The suit was brought before the Supreme Court as "South Dakota v Newegg, Wayfair, and Overstock". Also, states will be taking in more in sales taxes, which they will have to decide how to use. For example, the popular electronics seller B&H only charges sales tax in NY and New Jersey, where it has a physical presence. Prior to the ruling, sellers were responsible for collecting sales taxes if they had a presence in the state. But, if a business did not have a physical location in a state, it nearly certainly did not charge sales tax in that particular states.

Chris Geehern, a spokesman for Associated Industries of MA, a business trade group, said the court ruling has the potential to "introduce a high degree of complexity for companies that do sell things over the web".

President Trump talks Kim Jong-un meeting at Minnesota rally
Trump offered no apologies for cruelly separating thousands of immigrant children from their families. This is also one of several rallies Trump has held which focus on the American worker.

And don't even get me started on the unfair competitive advantage an online seller gets compared to a brick-and-mortar store that has to pay taxes in the community where it is located. Then we have a handful of states who don't even charge sales tax at all.

After the ruling was issued on Thursday, brick-and-mortar stocks rallied while online retailers fell.

That's because lawmakers in Olympia have already moved to expand online sales-tax collections in bits and pieces. In South Dakota's legislation, internet vendors with at least 200 transactions or $100,000 in sales to South Dakota residents must collect a sales tax.

Wayfair said that it "welcome [s] the additional clarity provided by the Court's decision today".

The National Retail Federation, a trade association, cheered Thursday's ruling, saying it would help to create a "fair and level playing field where all retailers compete under the same sales tax rules whether they sell merchandise online, in-store or both".

The biggest e-tailer in America, Amazon, now collects sales tax in the 45 states that charge sales tax, though it does not collect taxes on items sold by third-party sellers.

In South Dakota v. Wayfair, the question the High Court considered was this: "Should this Court abrogate Quill'ssales-tax-only, physical-presence requirement?"

Related News:

  • France into knockout stage after beating Peru

    France into knockout stage after beating Peru

    France have never lost a World Cup game when leading at half-time but Aquino almost pegged them back five minutes after the break. Denmark , which ended the match with Australia in a 1-1 draw earlier on Thursday, places second with four points.
    Hackers steal $30 million from top Seoul bitcoin exchange

    Hackers steal $30 million from top Seoul bitcoin exchange

    Without an independent audit or third-party report into the incident, however, it is hard to know exactly what happened. Bithumb is thought to be the sixth largest exchange in the world based on its trading volume of over $370m.
    Along With Lava, Hawaii Volcano Spews Gems

    Along With Lava, Hawaii Volcano Spews Gems

    Kilauea has destroyed more than 600 homes since it began spraying lava out of a vent on a residential street on May 3, 2018. The month-long eruption now covers more than 5,900-acres, a little more than nine square miles.
  • Trump reverses family separation policy after tech, political backlash

    Trump reverses family separation policy after tech, political backlash

    As such, they would be held in federal facilities and separated from their children. It also calls for prioritising immigration cases involving detained families.
    Dreamworld ride controls were 'confusing'

    Dreamworld ride controls were 'confusing'

    The inquest heard there was no drill training for staff at Dreamworld to determine how they would react in an emergency situation. Goodchild's 12-year-old daughter and Ms Low 10-year-old son were on the raft that flipped at the end of the ride, but survived.
    A 'milestone' World Cup win kicks off celebration for Mexico

    A 'milestone' World Cup win kicks off celebration for Mexico

    Brazil failed to win their opening game for the first time since 1978, but still haven't lost an opening match since 1930.
  • IGTV is Instagram’s answer to YouTube

    The company is calling the app as "a new app for watching long-form, vertical video from your favourite Instagram creators." . Systrom said IGTV would be available on Wednesday for Android and iOS and through an update in the Instagram app.
    Prince William Reveals How He Got 'Street Cred' with Prince George

    Prince William Reveals How He Got 'Street Cred' with Prince George

    Since his birth on April 23 , young Prince Louis of Cambridge has stayed mostly (and understandably) out of the spotlight. Prince Louis' christening details have been revealed by Kensington Palace two months after he was born on April 23 , 2018.
    [H]ardOCP: Cyberpunk 2077 was Really Real this Year

    [H]ardOCP: Cyberpunk 2077 was Really Real this Year

    As with all leaks, CD Projekt RED may take down these audio files so make sure to save them while they are still available. This year's E3 featured an exciting trailer for Cyberpunk 2077 , which sheds light on what you'll be doing in the game.
  • Merkel seeks European Union  migrant talks as German coalition crisis looms -paper

    Merkel seeks European Union migrant talks as German coalition crisis looms -paper

    Seehofer's ultimatum has become one of the biggest challenges to Merkel's authority since she took power almost 13 years ago. More than 1.6 million migrants, mostly Muslims fleeing wars in the Middle East, have arrived in Germany since 2014.
    Twitter Suspends Journalists Sharing Stephen Miller's Personal Phone Number

    Twitter Suspends Journalists Sharing Stephen Miller's Personal Phone Number

    Despite the suspensions, other users continued to share the number and upload screen-grabs of text messages they sent to it. HuffPost covered the controversy with the headline, " New York Times Caves to White House on Stephen Miller Interview".
    ZTE shares tank after U.S. Senate puts Trump reprieve in doubt

    ZTE shares tank after U.S. Senate puts Trump reprieve in doubt

    Still, Trump might yet get his way on ZTE, which has seen its market value lose billions since this saga started. The settlements are crucial for ZTE to resume buying the United States components essential to its products.


Most liked

North Korean missile site Trump says Kim pledged to destroy identified
Kim also pledged to return the remains of USA soldiers killed in the 1950-1953 Korean War. During the Vietnam War, North Korean forces captured a U.S.

Australia held to 1-1 draw against Denmark despite dominant performance
Critically, his goal gave the Socceroos belief after Denmark's fast start, highlighted by Christian Eriksen's well-taken seventh-minute goal.

Messi shouldn't shoulder all responsibility - Sampaoli
Yes, that's not quite crying Messi, but the Argentine ace has clearly come down with a severe case of the feels. In Messi, Maxi Meza, Angel Di Maria and Aguero, Sampaoli arguably has the best attack at the World Cup.

Homeland Security prepares order to end family separations at border
Trump's executive order reversing the practice continued to argue that Congress' inaction allowed the situation to happen. In the Oval Office, Trump said he had also heard from his daughter and aide, Ivanka Trump, about the policy.

AT&T WatchTV low-priced live television streaming service revealed
But that service includes sports channels like ESPN and local broadcast stations and regional sports networks. WatchTV is the first example of how AT&T plans to marry distribution and programming from Time Warner.

Disney Are Making A Nintendo Switch Gameshow
During the E3 Conference, Nintendo revealed that there is a new Super Smash Bros . game heading to the Nintendo Switch . Games specifically mentioned to be used in the show are Super Mario Odyssey , Mario Tennis Aces , and Just Dance 2018 .

Harry and Meghan receive rapturous welcome at Royal Ascot
Punters traditionally have a bet on the colour of the Queen's hat with yellow the top choice with bookies. The royal couple will carry out their first official engagement here since they tied the knot last month.

Spain beat Iran 1-0 with Costa's third goal of World Cup
Iran , meanwhile, face Portugal on the same day needing a win to progress at the expense of Cristiano Ronaldo and Co. Spurred on by their vociferous fans, Iran's imposing players did well to handle Spain's attacks.

England Test in 2019 'likely' as Afghan game fixed
The new one-day worldwide qualification league and world test championship were other features of the FTP document. The league permits every series to a three-match fixture.

WHO Lists Gaming Disorders as a Mental Health Condition
It certainly looks like the disorder is being described by people who are not entirely familiar with video games . The number of people this might affect would be a very small percentage of people who play games.

Donald Trump dramatically backs down on family border separations
However, at the 20-day mark, under the Flores consent decree, the department will have to release the children from custody . Here's what we know about the current immigration policy and what the new executive order will change.

Lucasfilm hits pause on 'Star Wars Story' spinoff movies
And unknown is the fate of a Boba Fett spinoff from James Mangold , rumors of which were flying around before " Solo's " release. Initially announced as "anthology" movies, the spinoffs got off to a rocky start and haven't exactly been smooth sailing.

Diego Costa gets angry in post-match interview after Spain beat Iran
Fernando Hierro's side have struggled to break down Iran , who have set up with 11 men behind the ball for most of the game. TWENTY seconds left on the clock, a goal down against Spain with World Cup progression on the line and you have a throw in.

PUBG's new Event Pass sounds a lot like Fortnite's Battle Pass
In conjunction with the launch of the new Sanhok map this Friday on 22 June, the Event Pass system will also go live. Outside of bringing in new people, however, the June 22 update could get many lapsed players to return to the game.

Starbucks closing 150 underperforming stores in 2019
Additionally, it plans to cut general and administrative costs, and has hired a consultant to help in this area. Just three quarters ago, same-restaurant sales in China had risen 8 percent, Glass said.