Monday, 16 July, 2018

Supreme Court rules states can force online retailers to collect sales tax

Enlarge this image Enlarge this image
Beatrice Douglas | 21 June, 2018, 19:55

The court on Thursday decided in favor of states in South Dakota vs. Wayfair, a direct challenge to a 1992 decision in Quill Corp. vs.

Internet retailers can be required to collect sales taxes in states where they have no physical presence, the Supreme Court ruled on Thursday....

This overturns a decision from 1992 that mandated that states could levy taxes on businesses only if they had a brick-and-mortar presence within that state's borders.

The case is South Dakota v. Wayfair.

Large online retailers, like Amazon, tend to collect sales tax in most states, but not all. Customers were generally supposed to pay the tax to the state themselves if they were not charged by the merchant, but the vast majority of consumers did not.

One of the big advantages online retailers have had over your local shop is a lack of sales tax.


In truth, this doesn't have much impact on Amazon, which has been collecting sales tax across the country since past year.

"Any adjustment to those rules with the potential to disrupt the development of such a critical segment of the economy should be undertaken by Congress", Roberts wrote in a dissent joined by Justices Stephen Breyer, Elena Kagan and Sonia Sotomayor. This system standardizes taxes to reduce administrative and compliance costs: It requires a single, state-level tax administration, uniform definitions of products and services, simplified tax rate structures, and other uniform rules. That minimum requirement was likely meant to avoid an undue burden on small-time mom-and-pop sellers on eBay, Amazon or other online marketplaces.

South Dakota concluded in 2016 that the explosion in online sales changed the market dramatically.

South Dakota wanted out-of-state retailers to begin collecting the tax and sued several of them: Overstock.com, electronics retailer Newegg and home goods company Wayfair.

The Trump administration had urged the justices to side with South Dakota.

But many online sellers, such as Etsy or EBay, that serve as a third party portal for thousands of small homegrown businesses that do not pay sales taxes, point to confusing tax rules that could expose them to costly audits for any revenue shortfall. However, Alaska and Montana allow individual individual cities to collect local sales taxes, according to the Tax Foundation.

Recommended

Google Podcasts: Everything you need to know! Google Podcasts: Everything you need to know! Unlike the Messages app for macOS which Apple uses for desktop iMessage access, Google has instead made a web-based chat client. After tapping the + button right beside the composing section, you can search for GIFs and send them to other users.

United Kingdom vows to vote against Palestine at UN Human Rights Council United Kingdom  vows to vote against Palestine at UN Human Rights Council Ambassador to the UN Nikki Haley plan to announce the withdrawal at the State Department in Washington at 5 p.m." today. Added Kenneth Roth, the executive director of Human Rights Watch: "All Trump seems to care about is defending Israel".

Almost 2,000 children separated from adults at border: US - International Almost  2,000 children separated from adults at border: US - International The Obama administration also detained illegal immigrants at the border, but would detain parents and children together . The official tally of separations is now almost 4,000 children, not including March and the beginning of April 2018.

Rescue boat Aquarius finally docks in Valencia Rescue boat Aquarius finally docks in Valencia Hundreds of migrants on the Aquarius rescue ship are set to arrive in Spain following the diplomatic row over their future. They also both called for steps to beef up Europe's borders to prevent illegal immigration.

Stocks sink as new Trump tariff threat spooks investors Stocks sink as new Trump tariff threat spooks investors If Trump does impose these additional tariffs, the USA will have imposed tariffs on $450 billion in Chinese goods. The White House hasn't set a date for the imposition of any new tariffs beyond the initial list.

10-man Colombia loses out to Japan in World Cup opener 10-man Colombia loses out to Japan in World Cup opener Yuya Osako celebrates scoring Japan's second goal with coach Akira Nishino and teammates. Okazaki did get in the game, but not until the 85th minute.

Winning goal causes natural disaster in Mexico Winning goal causes natural disaster  in Mexico Nearly immediately, they had a chance to level only for Guilhermo Ochoa to push Kroos' free-kick onto the bar with his fingertips. Will they bounce back from their humbling today? More reliance was on speed and movement on the counterattack.

Paul Pogba scores late victor as France edge plucky Socceroos Paul Pogba scores late victor  as France edge plucky Socceroos Between the three of them, Risdon, Milligan and Sainsbury had 26 interceptions, more than the entire French team combined. From running at defenders to threading in through balls into the Australian box, France did everything they could.

Saudi Arabia players face 'penalty' after disastrous World Cup defeat Saudi Arabia players face 'penalty' after disastrous World Cup defeat Once again, I could feel the energy that inspired me for many years. Saudi Arabia battle Uruguay the following day in Rostov.

Trump announces 25% tariff on Chinese imports Trump announces 25% tariff on Chinese imports The U.S. imports a LOT more Chinese goods than the Chinese import in regards to American goods and its easy to see above. The United States has already imposed tariffs on steel and aluminum from Canada, Mexico and the European Union.

Mixed reactions trail Nigeria’s loss to Croatia Mixed reactions trail Nigeria’s loss to Croatia Rohr, while speaking at the post-match conference of the 2018 FIFA World Cup Group D fixture, said he and his players were aware they made some important mistakes during the game.

Western's Weather Wrap: Hot Father's Day Weekend Western's Weather Wrap: Hot Father's Day Weekend Another round of locally strong storms today will be followed by quieter weather over the weekend. In the past, heat advisories were issued in NY when the heat index reached 100 degrees or more.

India did not take Afghanistan lightly: Ajinkya Rahane India did not take Afghanistan lightly: Ajinkya Rahane More importantly, they sucked up 103 deliveries and underlined their approach to play out time. But putting the sporting spirit of the winning captain, it was a disaster for Test cricket.

Spurs Rumors: Suns interest in Kawhi Leonard disputed Spurs Rumors: Suns interest in Kawhi Leonard disputed Thus, everyone has been dreaming up their own Kawhi Leonard trade scenario with the Los Angeles Lakers . Teams considering putting together trade packages in order to acquire Leonard will have to dig deep.

Iceland fans bring back Viking clap celebration at Russia World Cup Iceland fans bring back Viking clap celebration at Russia World Cup Meanwhile, Messi , one of the players to watch out for, will take the field in Argentina's opening match against Iceland . Peru , playing in their first World Cup finals match since 1982, became the second team to miss a penalty today.