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IN officials react to Supreme Court's online sales tax decision

24 June 2018

Online retail has grown at the expense of physical stores.

Crowe & Dunlevy attorney Hayley R. Scott, said many people don't report online sales on their state income taxes and making businesses responsible will likely mean a difference of billions of dollars nationwide.

Sales tax collection in Florida already has been evolving.

The 5-4 court opinion finally recognizes the impact of the internet and acknowledges commerce has changed since the court ruled in the 1960s and early 1990s that businesses had to have a physical presence in the state before the state could require them to collect state and local sales taxes.

Groups representing West Virginia's business community support the U.S. Supreme Court decision allowing states to collect sales tax from retailers involved in online purchases. Walmart is another retailer that collects online sales tax because it has physical locations in the state.

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Nebraska lawmakers came close to passing a bill this year that would have required state revenue officials to start collecting sales taxes from online retailers.

The General Accountability Office estimates that states could have taken in $13.4 billion more in revenues a year ago with an online sales tax.

"We'd love to sit down with him and talk about this and educate him about the fairness of it", she said on "Talkline". Under the agreement, retailers can use a sales tax compliance service of their choice without charge for transactions in the participating states, according to Craig Johnson, executive director of the Streamlined Sales Tax Governing Board. I mean you've got the folks that have made the investment to build a facility and employ local people.

In theory, customers who shopped on those sites were supposed to pay taxes themselves, through the state's use tax, but few did. Local shopkeepers and web retailers should compete on price, selection, quality and convenience - not on who can game sales taxes. He estimates his practice loses more than $75,000 in sales annually to online stores.

"We are a revenue neutral legislature". That makes me really think twice about whether or not we push online sales as a component of our company.

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"I want to stress that we're not looking at this as an additional revenue stream".

"If this creates an opportunity to lower a tax somewhere else, we need to look at these possibilities, as well".

Only five states do not have a state-wide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. "Businesses should leverage a set of tools that combines the deep domain expertise of the nexus footprint in all 10,000 taxing jurisdictions across the USA, with the technology to quickly and easily keep track of, calculate, collect and remit sales tax to the taxing authorities". "They know exactly where it went because they shipped it there". "It's taxes and regulation all combined in one unfortunate tax", says Raymond Keating, chief economist with the Small Business & Entrepreneurship Council.

"What this does for Washington County government is it provides more resources for our school system".

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IN officials react to Supreme Court's online sales tax decision