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US Online Shopping Is About To Get More Expensive

23 June 2018

Among other technical and practical reasons cited by the majority for its decision was the argument that no-sales-tax rules hurt state revenues supporting schools and services.

"It's a game-changer", said Rome City Commissioner Evie McNiece, who's serving her second term on the Georgia Municipal Association's revenue and finance committee.

The state Senate passed a bill past year similar to the South Dakota law that the Supreme Court upheld.

"It confirms we were on the right path", said Braun, who was chairman of the Senate Ways and Means Committee when that bill was written. The effective date is January 1, 2019.

Some states will still have to pass new legislation to demand tax from out-of-state orders, and that isn't always guaranteed.

"Our cities, counties and schools have seen declining revenue in recent years". A lack of sales tax online made it almost impossible for local stores to compete with their online rivals, South Dakota argued.

"It would be a great opportunity for us to put away some money for future downturns", Braun said. Supreme Court in a decision that should help level the playing field between bricks-and-mortar and internet-based sellers.

Congress has wrestled with the issue for years, but fierce lobbying by online retail giants has prevented a legislative fix. Justice Anthony Kennedy, who is largely credited for sparking the legal challenge, noted that in when Quill was originally decided there was $180 million in e-commerce sales versus $453.5 billion in retail e-commerce previous year.

"I think it's unconscionable that they would ask our businesses to become basically tax collectors for other states", he said.

Justices Anthony Kennedy, Clarence Thomas, Ruth Bader Ginsburg, Samuel Alito, and Neil Gorsuch delivered the opinion while John Roberts, Stephen Breyer, Sonja Sotomayor, and Elena Kagan dissented.

McNiece said there's been a growing trend of shoppers trying out items at local stores, then leaving to buy the item online.

"As in so many other areas, technology has evolved faster than the law and left us with at times weird, unfair results", she said.

"Quill creates rather than resolves market distortions", the ruling says.

In theory, customers who shopped on those sites were supposed to pay taxes themselves, through the state's use tax, but few did. Any seller with annual gross sales of more than $100,000 in North Carolina or with 200 or more separate sales in this state annually would be required to collect sales tax. He predicted the Legislature will attempt to clarify its own e-commerce-related tax laws in next year's session and said it was likely some e-retailers here would start voluntarily collecting sales tax in anticipation of those changes.

The exact impact of the ruling on Florida's sales tax collections is unknown but it could be significant.

US Online Shopping Is About To Get More Expensive