NRF applauds online sales tax decision

NRF applauds online sales tax decision

NRF applauds online sales tax decision

The Supreme Court has overruled a 1992 decision that prevented states from requiring businesses to collect sales taxes if they didn't have a physical presence in the state, The New York Times reports.

But the Supreme Court ruled that the previous court case was no longer relevent in the modern broadband era.

The Auto Care Association filed an amicus brief with other retail groups urging the Supreme Court to hear the case based on the price advantage that the current system provided online sellers, the association says.

One Greenfield business said it's not about avoiding the sales tax for most online shoppers.

South Dakota law requires retailers with more than $100,000 in sales or 200 transactions annually in the state to pay a 4.5 percent tax on purchases. "Now everybody is going to be collecting sales tax whether you order from Amazon or anywhere online". Expected to generate more than $24 billion for the state government in the current fiscal year, the sales tax is the single largest source of funding for the state. But state's were missing out on big bucks if there was no physical store. Quill determined how state taxes worked with e-commerce from the web's first days.

The exact impact of the ruling on Florida's sales tax collections is unknown but it could be significant. Those purchases could make up a third or more of Amazon's revenue, by some estimates. "Most states still need to pass laws or issue regulations that will allow them to use the expanded tax collection authority the court just granted".

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E-commerce retail sales accounted for only 8.9% of national retail sales in 2017, and sales taxes are generally not a majority of states' general fund revenue.

President Trump called the decision a "big victory for fairness" in a tweet posted Thursday afternoon. Amazon slipped half a percentage point.

But S&P also said it does not "anticipate any immediate rating changes because of the court's decision".

"We've seen a lot of show-rooming where people will go into a local brick and mortar store, try out a product and go to an online retailer and purchase it, so we've seen businesses close", said Thomas Barr with Local First Arizona.

Forsyth Mayor Eric Wilson says the ruling is a win-win for local governments.

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