SCOTUS - States can require sales tax from online retailers

#2
#2
"The states that are likely to see the biggest percentage increase in revenue are Louisiana, Tennessee, South Dakota, Oklahoma and Alabama, according to the Barclays research."
 
#5
#5
evillawyer said:
Haven't read the opinion. When you have multistate transactions, which states get to tax? One state or multiple states?
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Not sure - I was just referring to the concept in general. I love not paying sales tax but it does impact local business.
 
#7
#7
evillawyer said:
Haven't read the opinion. When you have multistate transactions, which states get to tax? One state or multiple states?
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I would assume the buyer's state gets the revenue since sales tax is a tax on the buyer that uses the retailer as the collection agency.
 
#8
#8
I feel like he majority of online purchases I make already charge sales tax.
 
#9
#9
golfballs said:
I feel like he majority of online purchases I make already charge sales tax.
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Same here. Some purchases I've made off Amazon had tax, others did not.

Just bought $150 worth of stuff Tuesday and 3 of the 5 items had tax applied.

Honestly, I'd thought Tennessee already charged sales tax.
 
#10
#10
golfballs said:
I feel like he majority of online purchases I make already charge sales tax.
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For me, it is probably 20%. I would say that I am a fairly heavy online shopper.

The major online retailers Walmart, Target, Nike, etc. do but a lot on Amazon and eBay nothing.
 
#11
#11
As a retired retail business owner, married to a retired retail business owner, and the son of 2 former retail business owners, and also the grandson of a former retail business owner, I applaud the decision. It is not fair for a business to pay for and display inventory in order for a customer to come in and look at it, touch it, etc. and then order it online to save money. It hurts local economies everywhere where the online place is located..
 
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#13
#13
TheDeeble said:
Same here. Some purchases I've made off Amazon had tax, others did not.

Just bought $150 worth of stuff Tuesday and 3 of the 5 items had tax applied.

Honestly, I'd thought Tennessee already charged sales tax.
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As I understand it the difference depends on the seller. If you are buying from Amazon (the source of the product) then you pay sales tax. If you are buying from a seller that lists and sells through Amazon then you may or may not depending on that seller's policy. (Amazon is not the "retailer" in this case).
 
#15
#15
1972 Grad said:
As a retired retail business owner, married to a retired retail business owner, and the son of 2 former retail business owners, and also the grandson of a former retail business owner, I applaud the decision. It is not fair for a business to pay for and display inventory in order for a customer to come in and look at it, touch it, etc. and then order it online to save money. It hurts local economies everywhere where the online place is located..
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Not saying it doesn't happen, but I've honestly never done this. If I can hold it in my hand I'm buying it right then even if it cost a couple bucks more than online.

Mostly the only stuff I buy online are things I can't get in store
 
#16
#16
volinbham said:
As I understand it the difference depends on the seller. If you are buying from Amazon (the source of the product) then you pay sales tax. If you are buying from a seller that lists and sells through Amazon then you may or may not depending on that seller's policy. (Amazon is not the "retailer" in this case).
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It makes sense. A few years ago online purchases didn't have sales tax(at least for me in TN I think), then there was some regulation change and I started seeing sales tax on almost all purchases. I figured the ones that didn't have sales tax were coming from states that weren't required to charge sales tax.
 
#17
#17
1972 Grad said:
As a retired retail business owner, married to a retired retail business owner, and the son of 2 former retail business owners, and also the grandson of a former retail business owner, I applaud the decision. It is not fair for a business to pay for and display inventory in order for a customer to come in and look at it, touch it, etc. and then order it online to save money. It hurts local economies everywhere where the online place is located..
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Amazon and other big retailers are still going to win on price every time. Amazon is collecting tax in many states and it hasn’t hurt sales at all. If something is 25% cheaper online than in a store I don’t care about the tax. Quality customer service is what will generate sales at a brick and mortar.
 
#18
#18
TheDeeble said:
Not saying it doesn't happen, but I've honestly never done this. If I can hold it in my hand I'm buying it right then even if it cost a couple bucks more than online.

Mostly the only stuff I buy online are things I can't get in store
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I have a good friend who owns a golf shop, and he says it happens very often. The dumbasses will tell him that they bought golf equipment online due to the sales tax. The item wouldn't be any cheaper because places like Callaway, Ping, Titleist, etc. have set prices. If the shipping was less than the sales tax, they would get it shipped.
 
#19
#19
Quill is the landmark case before this. It stated if you don’t have a physical presence in a state you aren’t obligated to collect tax on behalf of that state. It put the onus on the customer to remit use tax. This was figured to be a 5-4 decision one way or another with Kennedy deciding it. There will need to be carve outs, small online outfits are going to be hard pressed to be compliant in every sales tax jurisdiction in the country.
 
#20
#20
DancingOutlaw said:
Quill is the landmark case before this. It stated if you don’t have a physical presence in a state you aren’t obligated to collect tax on behalf of that state. It put the onus on the customer to remit use tax. This was figured to be a 5-4 decision one way or another with Kennedy deciding it. There will need to be carve outs, small online outfits are going to be hard pressed to be compliant in every sales tax jurisdiction in the country.
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This part will be impossible without some sort of new centralized clearing software. For example, Tennessee's local portion for counties is often different. Zip codes don't always work for the exact location to apply the tax.
 
#21
#21
Ernest T. Vol said:
This part will be impossible without some sort of new centralized clearing software. For example, Tennessee's local portion for counties is often different. Zip codes don't always work for the exact location to apply the tax.
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There is no way they can put that on small businesses. Imagine your wife bakes dog treats and sells them online. She's supposed to get a business license, understand the implications of doing so for every jurisdiction, file to collect and remit sales taxes, etc. for every single place in the US a customer could be? And for what? She sees ZERO benefit from collecting and remitting tax to a foreign state. CA is almost impossible, they have business licenses and sales taxes by the county and even the city. And once you've filed something they are going to expect their pound of flesh at regular intervals. And they will send someone after you if you don't.

The states have been suing over this since Quill came out, they are over the moon. Now even more money will be sucked out of the economy and into government coffers to be wasted.
 
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#22
#22
DancingOutlaw said:
There is no way they can put that on small businesses. Imagine your wife bakes dog treats and sells them online. She's supposed to get a business license, understand the implications of doing so for every jurisdiction, file to collect and remit sales taxes, etc. for every single place in the US a customer could be? And for what? She sees ZERO benefit from collecting and remitting tax to a foreign state. CA is almost impossible, they have business licenses and sales taxes by the county and even the city. And once you've filed something they are going to expect their pound of flesh at regular intervals. And they will send someone after you if you don't.

The states have been suing over this since Quill came out, they are over the moon. Now even more money will be sucked out of the economy and into government coffers to be wasted.
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You're right. An effort was made for a similar approach by TN within the state and it could not be done.
 
#23
#23
DancingOutlaw said:
There is no way they can put that on small businesses. Imagine your wife bakes dog treats and sells them online. She's supposed to get a business license, understand the implications of doing so for every jurisdiction, file to collect and remit sales taxes, etc. for every single place in the US a customer could be? And for what? She sees ZERO benefit from collecting and remitting tax to a foreign state. CA is almost impossible, they have business licenses and sales taxes by the county and even the city. And once you've filed something they are going to expect their pound of flesh at regular intervals. And they will send someone after you if you don't.

The states have been suing over this since Quill came out, they are over the moon. Now even more money will be sucked out of the economy and into government coffers to be wasted.
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The South Dakota law, on which the SC decision is based, exempts businesses that sell less than $100,000 a year shipped to a particular state. 50 states at $100,000 each would be $5 million worth of dog treats. A hundred grand worth of dog treats sold to just one state is a lot of dog biscuits for my wife to bake. I'm going to need a double oven.
 
#24
#24
1972 Grad said:
The South Dakota law, on which the SC decision is based, exempts businesses that sell less than $100,000 a year shipped to a particular state. 50 states at $100,000 each would be $5 million worth of dog treats. A hundred grand worth of dog treats sold to just one state is a lot of dog biscuits for my wife to bake. I'm going to need a double oven.
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You gonna buy it online?
 
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#25
#25
1972 Grad said:
The South Dakota law, on which the SC decision is based, exempts businesses that sell less than $100,000 a year shipped to a particular state. 50 states at $100,000 each would be $5 million worth of dog treats. A hundred grand worth of dog treats sold to just one state is a lot of dog biscuits for my wife to bake. I'm going to need a double oven.
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That’s SD law. The other jurisdictions can do whatever they want. SCOTUS ruled on the ability for states to enforce collection.
 
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