Amazon (AMZN) and other e-commerce stocks fell Thursday, following a closely watched U.S. Supreme Court decision saying states can collect taxes from retailers that do not have a physical presence there.
What it means for out-of-state retailers is that sales tax nexus is no longer exclusively based on a physical presence standard.
"Retailers have been waiting for this day for more than two decades". "This is not a new tax". Residents are now obligated to pay a use tax on out-of-state online purchases.
The tax is 6.25 percent.
Today's ruling upheld a statute from South Dakota, which requires any company with more than $100,000 in annual sales to collect sales tax on sales made to customers in the state.
The ruling may now spur Congress to establish a single federal standard, including a uniform small-business exemption and limited ability for states to pursue out-of-state audits. "Technology has also allowed for compliance with state tax laws to become a lot easier too", said Tax Commissioner Ryan Rauschenberger. Big victory for fairness and for our country. "A virtual showroom can show far more inventory, in far more detail, and with greater opportunities for consumer and seller interaction than might be possible for local stores".
A "quarter century of experience has convinced me" the Supreme Court's earlier decision was no longer justified, he wrote, adding that it was "never too late" to arrive at a better position. Five states don't charge sales tax.
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The band was performing at the Alrosa Villa in Columbus, Ohio on December 8, 2004 when Darrell was shot and killed on stage. The group found mainstream success, earning four Grammy nominations, and charting nine albums on the Billboard 200 list.
Many believe brick-and-mortar stores will get a boost in traffic if shoppers see there is no clear financial advantage to shopping online.
"The taxpayers of Florida really rely heavily on the sales tax".
Some online retailers have already been collecting some state taxes.
The high court decided that states have the right to mandate sales charges from retailers whether or not they have a physical location within the state. However, this only applies to items from its own inventory, not those from third-party sellers.
E-commerce retail sales accounted for only 8.9% of national retail sales in 2017, and sales taxes are generally not a majority of states' general fund revenue.
Gov. Pete Ricketts indicated that he's determined to convert the potential revenue into local property tax relief, not state programming.