US Supreme Court ruling on sales taxes hurts smaller businesses

The U.S. Supreme Court building

The U.S. Supreme Court building

The ruling overturned two decades-old Supreme Court decisions that have made it tougher for states to collect sales taxes for certain purchases online, a situation they said costs them revenues each year.

But a new Supreme Court ruling upends how states handle online sales taxes.

But taxpayers could raise challenges, including the argument that collecting sales tax for previous sales could subject the seller to double taxation if the customer had already paid sales tax.

The Supreme Court's 5-4 decision overturns a 1992 court ruling that limited state tax authority to sales by businesses physically in the state.

The Court's decision does not mean the state won't enact various laws to make sure Oklahoma gets its due, Scott said. NY and California's rules are more complex, and those states have sought to increase sales tax collection by using broader definitions of what it means to do business within their borders.

"When I took office and our state was struggling financially, at that desperate time, I might have considered supporting legislation to enforce West Virginia sales tax on out-of-state transactions", Justice said.

Bridgett Lambert, the executive director of the West Virginia Retailers Association, said she was not sure if Justice understands the impact of the ruling. Yet there are many instances in which web merchants don't collect the tax.

States also still must announce dates by which retailers must be in compliance, says Scott Peterson, a vice president at Avalara, a manufacturer of tax collection software.

"The Trump Store has been a clear victor under what the court just labeled 'a judicially created tax shelter, '" Davis said.

In fact, the unfair burden has been on local retailers who have been collecting sales taxes.

We are asking you to join us and digitally sign our petition to show our political leaders that you stand against new Internet tax burdens that could permanently damage USA small businesses like yours. But he said he's concerned that it will create a complex web of online sales rules that could prompt some businesses to move. The court gave South Dakota a victory, knocking aside the physical-presence rule as arbitrary and obsolete in the digital age. But it's also "much bigger than that", Jackley said. "But once that happens, Trump Store and other internet retailers are going to have to start collecting sales taxes in states where they do a meaningful amount of business".

The tax compliance software and services are created to work with the programs retailers use to process their sales transactions.

Owners who have never collected out-of-state sales tax will need to get up to speed.

"With today's ruling, all businesses will compete on a level playing field", said South Dakota Gov. Dennis Daugaard (R), whose state brought the challenge to the Supreme Court. In that case, Quill v.

Starting next year shoppers will have to pay sales tax for all online purchases. Back then, "I was a junior in high school", she said, adding that her youngest son just finished his junior year in high school.