Retailers' Careful Strategy to Overturn Sales-Tax Precedent

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

Amazon, eBay, and Etsy stock are tanking after Supreme Court sales tax decision

Last month, Trump's business quietly updated the list of states to include NY, while Virginia was added not long before that.

Camera gear is about to get more expensive for most online shoppers in the United States.

The biggest beneficiary of the ruling would be the states.

But others have resisted, making Thursday's decision significant.

"Sales tax doesn't make that big of a difference".

The decision today opens the door for states to pass new legislation and begin collecting more sales taxes from online sellers.

"As a regional destination for working, eating, entertainment, and shopping, sales tax revenue is a major part of how we operate our government and improve our community", said Chris Floore, assistant to the county manager for public affairs for Macon-Bibb County.

The Supreme Court's 5-4 decision overruled a 1992 ruling that found the Constitution didn't allow states to require businesses to collect sales taxes unless they have a substantial connection to the state. The prior ruling has greatly affected e-commerce, which has taken off since 1992, as some e-tailers have been able to avoid paying sales taxes, enabling them to offer lower prices.

Justice John Roberts Jr. wrote the dissent.

The Supreme Court on Thursday ruled that states can collect sales tax from all retailers, even if those retailers do not have a "physical presence" in their state - ultimately paving the way for states to collect sales tax from online retailers.

Carl Davis, research director for the Institute on Taxation and Economic Policy, a non-partisan think tank, told Business Insider the Trump Store's sales tax collection policy is "a textbook example of the problem that this ruling is meant to address". Indiana Chamber of Commerce vice president of taxation and public finance, Bill Walz, says the change levels the playing field and will boost Indiana's sales tax base.

According to the Government Accountability Office, consumers pay taxes on roughly 80 percent of sales made by internet retailers. Amazon.com, with its network of warehouses, also collects sales tax in every state that charges it, though third-party sellers who use the site don't have to. Those dollars are expected to provide $200 million a year for the IL state treasury according to estimates by the Department of Revenue.

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