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Online retailers will now have to collect sales tax in the US

SteveGrabowski0
By SteveGrabowski0
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The Supreme Court just handed down a 5-4 decision in favor of South Dakota in South Dakota Vs Wafair. Of course every state is going to follow South Dakota's lead in collecting sales tax on online purchases now that precedent has been established by the Supreme Court.

 

https://www.cbsnews.com/news/supreme-court-rules-in-internet-sales-tax-case/

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WASHINGTON — 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.

 

Quote

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.

 

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this doesn't follow the tech news guidelines. Might want to fix before it gets blocked

Insanity is not the absence of sanity, but the willingness to ignore it for a purpose. Chaos is the result of this choice. I relish in both.

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Votes for South Dakota were:

Alito (Republican)

Gorsuch (Republican)

Kennedy (Republican)

Thomas (Republican)

Ginsburg (Democrat)

 

Votes against South Dakota were:

Sotomayor (Democrat)

Kagan (Democrat)

Breyer (Democrat)

Roberts (Republican)

 

source: https://www.argusleader.com/story/news/politics/2018/06/21/us-supreme-court-wayfair-south-dakota-sales-tax/720789002/

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This is really going to suck for the consumers who intentionally buy online for the purpose of avoiding having to pay a tax... 

 

Government now gets more tax revenue... and they don't exactly have a good track record of utilizing tax money either. 

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As far as I am aware this has been a thing for awhile.  I have had to play sales tax on Amazon for well over a year at this point.  Not sure where the figures of Amazon only collects sales tax in two states.  I know for sure there are more stats than just Washington and Pennsylvania they collect tax.  The law was, any place an online retailer has a physical presence, must pay tax if I remember correctly. Here is an example from a recent Amazon order.

image.png.946677376c0d139e365ffb360bf227de.png

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1 minute ago, Jtalk4456 said:

this doesn't follow the tech news guidelines. Might want to fix before it gets blocked

Why? I put a couple of my thoughts at the top. Namely that every state is going to follow South Dakota's lead. The CBS article comes after.

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6 minutes ago, Ganz said:

As far as I am aware this has been a thing for awhile.  I have had to play sales tax on Amazon for well over a year at this point.  Not sure where the figures of Amazon only collects sales tax in two states.  I know for sure there are more stats than just Washington and Pennsylvania they collect tax.  The law was, any place an online retailer has a physical presence, must pay tax if I remember correctly. Here is an example from a recent Amazon order.

image.png.946677376c0d139e365ffb360bf227de.png

They're talking about Amazon Marketplace. In Texas I get charged sales tax if I buy something from Amazon itself, but I buy used items from sellers on Amazon Marketplace too and as long as those come from out of state I haven't had sales tax collected by them.

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The dumbest thing ever is paying sales tax on a DIGITAL item. Every time I get something non physical from Blizzard, I use a dummy address because my state charges sales tax on ANY online purchase already.

 

 

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Question is: does this really affects somebody like Amazon that has already established a vast, international logistics network to procure deliveries?

 

Because if I was looking as a smaller business trying to break into retail sales, I knew that my options would be to have an extremely limited-in-scope mom-and-pop type of local retail stores or try to use the competitive advantage of not having your customers cover taxes as a competitive advantage that might help my online business get off the ground in using that 15% (or whatever it is on that state) as a way to be able to compete with the overwhelming presence of somebody like Amazon by having at least a little bit of margin available to move around at prices that are at least within the same ballpark.

 

But now I don't see Amazon really affected by this yet I see the smaller guys trying to get off the ground hit the most. It will have the opposite effect of what this is trying to achieve.

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15 minutes ago, SteveGrabowski0 said:

Why? I put a couple of my thoughts at the top. Namely that every state is going to follow South Dakota's lead. The CBS article comes after.

the stuff from the article needs to be in quote boxes, as it is I can't tell what if your opinion vs the article

Insanity is not the absence of sanity, but the willingness to ignore it for a purpose. Chaos is the result of this choice. I relish in both.

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18 minutes ago, Ganz said:

As far as I am aware this has been a thing for awhile.  I have had to play sales tax on Amazon for well over a year at this point.  Not sure where the figures of Amazon only collects sales tax in two states.  I know for sure there are more stats than just Washington and Pennsylvania they collect tax.  The law was, any place an online retailer has a physical presence, must pay tax if I remember correctly. Here is an example from a recent Amazon order.

image.png.946677376c0d139e365ffb360bf227de.png

For Amazon it goes off of where the warehouse is and if it’s in your own state you pay even more

▓ƆԀ▓ S▓₱▓Ɇ▓c▓s▓: i7 6ʇɥפᴉƎ00K (4.4ghz), Asus DeLuxe X99A II, GT҉X҉1҉0҉8҉0 Zotac Amp ExTrꍟꎭe),Si6F4Gb D???????r PlatinUm, EVGA G2 Sǝʌǝᘉ5ᙣᙍᖇᓎᙎᗅᖶt, Phanteks Enthoo Primo, 3TB WD Black, 500gb 850 Evo, H100iGeeTeeX, Windows 10, K70 R̸̢̡̭͍͕̱̭̟̩̀̀̃́̃͒̈́̈́͑̑́̆͘͜ͅG̶̦̬͊́B̸͈̝̖͗̈́, G502, HyperX Cloud 2s, Asus MX34. פN∩SW∀S 960 EVO

Just keeping this here as a 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20 minutes ago, SteveGrabowski0 said:

Why? I put a couple of my thoughts at the top. Namely that every state is going to follow South Dakota's lead. The CBS article comes after.

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34 minutes ago, Ganz said:

As far as I am aware this has been a thing for awhile.  I have had to play sales tax on Amazon for well over a year at this point.  Not sure where the figures of Amazon only collects sales tax in two states.  I know for sure there are more stats than just Washington and Pennsylvania they collect tax.  The law was, any place an online retailer has a physical presence, must pay tax if I remember correctly. Here is an example from a recent Amazon order.

image.png.946677376c0d139e365ffb360bf227de.png

The big retailers mostly gave up this fight a long time ago. There are merchant services, already, to handle this type of stuff. I believe Amazon runs one of the biggest specifically for dealing with Sales Tax by Locality.

 

This was always going to happen, eventually. Though it might take a few more trips back through the Courts before it is over.

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The ruling sets precedent, States are not forced to collect the taxes. Title is misleading. 

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41 minutes ago, Jtalk4456 said:

the stuff from the article needs to be in quote boxes, as it is I can't tell what if your opinion vs the article

OK changed, and only a couple of quotes from the article are posted now

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49 minutes ago, Mooshi said:

The dumbest thing ever is paying sales tax on a DIGITAL item. Every time I get something non physical from Blizzard, I use a dummy address because my state charges sales tax on ANY online purchase already.

Gotta find ways to gouge money outta the citizens :D

 

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Just now, DrMacintosh said:

The ruling sets precedent, States are not forced to collect the taxes. Title is misleading. 

Really? What state is going to say no to free money?

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58 minutes ago, MyInnerFred said:

This is really going to suck for the consumers who intentionally buy online for the purpose of avoiding having to pay a tax... 

Its not like that was a legit thing to do anyway. 

 

You're trying to save a buck that you otherwise shouldn't have been able to. Now you might start having to pay those taxes. I'm fine with it personally. 

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2 minutes ago, SteveGrabowski0 said:

Really? What state is going to say no to free money?

You are saying states are required to collect the tax money, thats a lie. States are allowed to collect the money. 

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2 minutes ago, DrMacintosh said:

Its not like that was a legit thing to do anyway. 

 

You're trying to save a buck that you otherwise shouldn't have been able to. Now you might start having to pay those taxes. I'm fine with it personally. 

It wouldn't be that big of a deal to me if the taxes were used more efficiently, but that itself is probably asking for too much.

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2 minutes ago, MyInnerFred said:

Gotta find ways to gouge money outta the citizens :D

 

Also nice Aggretsuko profile picture~

I refuse to give Arizona an extra 82 cents for something that isn't real, they can kindly heck off and thanks :D

 

 

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1 minute ago, MyInnerFred said:

It wouldn't be that big of a deal to me if the taxes were used more efficiently, but that itself is probably asking for too much.

Thats why you need to vote and pay attention to your local politics. People complain about government but expect others to make changes.....when everyone thinks that nothing happens.

 

Its government by the people, for the people. If the people don't get involved, they have no right to complain about what Government does. 

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10 minutes ago, DrMacintosh said:

Thats why you need to vote and pay attention to your local politics. People complain about government but expect others to make changes.....when everyone thinks that nothing happens.

 

Its government by the people, for the people. If the people don't get involved, they have no right to complain about what Government does. 

I do pay close attention to my local politics, that's the exact thing I got into a debate with someone else on LTT forums about just a while ago. If you think what the government is doing now is disagreeable with you then you should get in involved with changing it, he was under the assumption he was giving the system the middle finger because he didn't participate but all he was doing was letting it continue to run the way it has been and complaining for the sake of complaining.

 

He though moving to another country would resolve his issues.

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I'm 100% in favour of doing this. I support South Dakota's efforts to force online retailers to collect tax owed.

 

Why? Because you still had to pay that tax anyway. You just had to pay it during tax season, when you did your taxes.

 

Anyone who didn't pay those taxes manually during tax season was breaking the law - intentionally or unintentionally. It would be actual tax fraud if you intentionally shopped at an online retailer you knew didn't collect sales tax, so that you could "save some money".

 

I get it - I like to save money too. But don't break the law to do so. Buy used, or find other methods of being frugal, if you need that extra money that would otherwise go to tax.

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40 minutes ago, DrMacintosh said:

You are saying states are required to collect the tax money, thats a lie. States are allowed to collect the money. 

I said online retailers will have to

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