Home » Money

Governor, Finance chair do not support internet sales tax

24 June, 2018, 23:50 | Author: Shawna Walton
  • Supreme Court closes online sales tax loophole

The Supreme Court just handed down a decision in South Dakota v Wayfair, Inc. that states can force online retailers to collect sales taxes from purchases.

The nation's top court ruled on Thursday that states can collect sales taxes for purchases from businesses not within their borders. Alaska and Montana allow individual cities to collect local sales taxes, according to the Tax Foundation. That's a question on many minds after Thursday's Supreme Court ruling in South Dakota v Wayfair (see EcommerceBytes' article, "Supreme Court Throws Out Longstanding Sales Tax Rule-Book", published on Saturday). B&H doesn't require that buyers pay sales tax if they place orders outside of NY or New Jersey, and while you're supposed to later pay those uncollected funds when tax time comes around, the vast majority of people don't.

The cases the court overturned said that if a business was shipping a customer's purchase to a state where the business didn't have a physical presence such as a warehouse or office, the business didn't have to collect sales tax for the state.

But when and if that happens depends on the state: Some may pass laws quickly, others can take years and some states, like the ones that don't have a sales tax, may choose not to require it, says Bishop-Henchman. Rocky Cummings of BDO the accounting, tax, and advisory firm said: "There was very little voluntary compliance with the use tax". That earlier ruling placed the responsibility of paying the online sales tax on customers who generally did not realize they owed it. "It's taxes and regulation all combined in one unfortunate tax", says Raymond Keating, chief economist with the Small Business & Entrepreneurship Council. Some states have exemptions for collecting sales tax.

"I don't have to travel anywhere and typically online prices are still lower than retail stores", Teisanu said.

"The South Dakota model is a safe bet for states, so it's reasonable for them to start there" said Max Behlke, who directs budget and tax issues at the National Conference of State Legislatures.

We asked some vendors of sales-tax services for their advice.

This court decision will create a fairer playing field for retailers and make it easier for governments to continue financing themselves effectively through sales tax.

Washington, Florida, South Dakota, Nevada and Tennessee get more than half of their total revenues from sales taxes, meaning big gains could be in store. The decision was seen as a victory for brick-and-mortar stores, which felt they were at a disadvantage to online outlets that did not need to collect the taxes. To be compliant with the Streamlined Sales Tax Agreement, a State must administer one tax rate.

You may, depending on where you live and what online store you shop at.

Estimates have North Dakota bringing in as much as $20 to $50 million in sales tax now that the rules have changed.

However, FOX 13 reported last month that the Utah Tax Commission has been quietly inking deals with a number of online retailers to get them to collect taxes.

Recommended:

  • Nick Jonas Makes It Official With Priyanka Chopra On Instagram

    Nick Jonas Makes It Official With Priyanka Chopra On Instagram

    After months of speculation, it seems Priyanka Chopra and Nick Jonas have finally decided to make their relationship official. A source said at the time: " Priyanka and Nick were talking really closely and were very smiley and very happy".
    Marijuana Will No Longer Get You Arrested if You Are in Canada

    Marijuana Will No Longer Get You Arrested if You Are in Canada

    The most controversial aspect of Canada's move has been setting the minimum age for use at 18 or 19, depending on the province. Conservative Party leader Andrew Scheer said that making the drug more accessible will normalize its use, Vox reported.
    Harry and Meghan set to visit Dublin in July

    Harry and Meghan set to visit Dublin in July

    For their first official royal engagement overseas as a married couple, the Duke and Duchess of Sussex are heading to Dublin. But Meghan is diving in heard-first, keen to experience a day at the races with her new extended family.
  • Japanese World Cup Fans Clean Up The Stadium After Winning Against Colombia

    Japanese World Cup Fans Clean Up The Stadium After Winning Against Colombia

    Senegal manager Aliou Cisse says he is "certain" an African team will eventually win the World Cup. The Lions of Teranga's next match is against Japan on 24 June.

    United States withdraws from UN Human Rights Council

    Critics say this sends a message that the administration turns a blind eye to human rights abuses in some parts of the world. Haley has warned the council previous year that the United States would withdraw from the council if changes were not made.
    No motive, arrests in fatal shooting of rapper XXXTentacion

    No motive, arrests in fatal shooting of rapper XXXTentacion

    He was considered a genre-bending artist, who cited a variety of influences that ranged from Tupac Shakur to Coldplay. XXXTentacion had been accused of viciously assaulting his pregnant ex-girlfriend , among other charges.
  • Trump threatens tariff on all European cars

    Trump threatens tariff on all European cars

    The move is a response to new United States tariffs imposed on European Union steel and aluminium by President Donald Trump . The European Autos Stocks Index fell sharply after Trump's 20 per cent tariff tweet and was last down 1.25 per cent.

    Lucky Spain top Group B after win against Iran

    David Silva sent a free kick straight into the arms of keeper Ali Beiranvand in the 25th minute for Spain's first shot on goal . Costa, who also scored two goals in the opening match, has three goals at this year's World Cup , trailing Ronaldo by one.
    Gregg Popovich meets with disgruntled Kawhi Leonard

    Gregg Popovich meets with disgruntled Kawhi Leonard

    That's while Popovich told the media to ask Leonard's "group" about his timetable to return from injury. He is eligible to sign a five-year, $219 million supermax extension with San Antonio this summer.
  • Japan seals historic win over 10-man Colombia

    Japan seals historic win over 10-man Colombia

    Osako's gritty determination led to a 73rd-minute header from Keisuke Honda's corner kick that gave Japan three points in Group H. It was the ideal start to their campaign, making Japan the first Asian country to defeat a South American team at a World Cup.
    Dele Alli to return to England training ahead of Panama game

    Dele Alli to return to England training ahead of Panama game

    Southgate says we shouldn't read too much into this document and that it doesn't confirm any individual players statuses for Sunday.
    WTI Crude Oil and Natural Gas Forecast

    WTI Crude Oil and Natural Gas Forecast

    Retail prices of petrol and diesel are ruling at Rs 75 a litre and Rs 68 a litre amid the global surge in crude prices. However, most OPEC members are not able to increase production at this stage due to lack of investment and sanctions.


Popular

Canada's Trudeau says cannabis will become legal in mid-October
"It's been too easy for our kids to get marijuana-and for criminals to reap the profits", Trudeau said on Twitter . Originally, the government had planned for only a two-to-three-month gap between the bill passing and legalization.

Trump vows to secure borders, wants meritorious people to come to US
Trump's comments came two days after he signed an executive order to halt the separation of migrant children from their families. Parents who remained locked up struggled to get in touch with children being held in many cases hundreds of miles away.

Will the child-separation fiasco take down Stephen Miller?
Splinter slammed Twitter by highlighting a number of still-active tweets that would appear to violate the company's rules. Since Miller's cell phone number has since been deactivated, Twitter is no longer taking action against users sharing it.

New Zealand PM gives birth to first child
She then continued to work from her home in Auckland up until the day before going into labor. New Zealand's Prime Minister, Jacinda Ardern has had a baby girl.

Trump's immigration order sparks confusion, deep concern
This certainly would go against Trump's 'America First' mantra if major U.S. businesses are turning against his harsher policies. Mr Trump has previously said it was up to Congress to resolve the issue, in combination with tougher immigration regulations.

Buhari speaks on Nigeria's defeat of Iceland in Russian Federation
Nigeria coach Gernot Rohr said he is not under pressure ahead of the match. "The most important thing is the team". Argentina and Iceland both have one point after drawing their opening game in Moscow.

Top bitcoin exchange says over $30 million in cryptocurrencies stolen
Hackers have stolen cryptocurrencies worth $US30 million from South Korea's leading virtual currency exchange, Bithumb . Bithumb , which is the world's sixth-largest exchange by volume, originally revealed it had been attacked Wednesday.

Upping ante, Trump threatens new tariffs on Chinese imports
As the Trump administration threatened tariffs of $200 billion on China imports, the People's Republic was quick to react. That would leave about $120 billion of imports available for retaliatory tariffs after Saturday's announcement.

Starbucks to close 150 stores whose sales aren't up to snuff
Stifel pulled its target price down slightly, to $55, just a bit above current levels. Stock for the company dropped as much as 5 percent in after-hours trading.

Ronaldo shoulders Portugal against Morocco, becomes top European goalscorer for national teams
Ronaldo also leads the way when it comes to the Golden Boot after scoring his fourth goal of the tournament. The Atlas Lions had more shots (4) on target than they did in their first game against Iran.