Virginia Retail Federation announced BREAKING NEWS on June 21: Today’s online sales tax #SCOTUS ruling is a major victory for retailers on Main Street!
The Supreme Court says states can force online shoppers to pay sales tax. The 5-4 ruling Thursday is a win for states, who said they were losing out on billions of dollars annually under a two decades-old Supreme Court decisions that affected online sales tax collection.
The high court ruled Thursday to overturn those decisions. “The Internet’s prevalence and power have changed the dynamics of the national economy,” the court said in its decision in the case, South Dakota v. Wayfair.
The previous law resulted in some companies not collecting sales tax on every online purchase. The cases the court overturned said that if a business was shipping a product to a state where it didn’t have a physical presence such as a warehouse or office, it didn’t have to collect the state’s sales tax. 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.
The decision has major implications for online retailers, including Amazon. (“Supreme Court Rules In Internet Sales Tax Case,” 2018)
WHY THIS MATTERS
This ruling brings us one step closer to leveling the playing field between brick & mortar and online retailers by correcting this outdated tax law.
VRF and other state and national retail groups across the nation have argued that lack of uniform collection is “inflicting extreme harm and unfairness” on local retailers by “distorting the retail market in favor of absentee ecommerce.”
While this is a major win, the fight continues, as it is still necessary to spell out details on how sales tax collection will take place rather than leaving it to each of the states to interpret the court’s decision.
Contact VRF Lobbying Team:
Supreme Court Rules In Internet Sales Tax Case (2018, June 21), CBS news. Retrieved from http://cbsnews.com
NRF Says Supreme Court Sales Tax Ruling Creates ‘Fair And Level Playing Field’ Between Online And Local Retailers (2018, June 21), NRF. Retrieved from http://nrf.com