New sales tax ruling to spike retail prices online


Before this Supreme Court decision, online retailers who did not have a physical presence in a state, were not required to collect a sales tax. The Supreme Court just ruled that states may force online retailers to collect sales tax on their behalf.

Camera gear is about to get more expensive for most online shoppers in the United States.

President Trump called the decision a "big victory for fairness" in a tweet posted Thursday afternoon.

Now it's up to Congress to figure out a system for interstate commerce that's simple enough for small businesses to manage while still allowing states to determine how taxes will be collected.

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"Any adjustment to those rules with the potential to disrupt the development of such a critical segment of the economy should be undertaken by Congress", he wrote.

"The Trump Store has been a clear victor under what the court just labeled 'a judicially created tax shelter, '" Davis said. "So, this is not going to be a completely something new for people, but I think i twill help level the playing field for our physical stores in Nebraska", said Ricketts.

Another reason behind the limited impact is that some smaller companies have been charging sales tax in recent years, even though they weren't required to.

Customers were generally supposed to pay the tax to the state themselves if they were not charged by the merchant, but the vast majority did not.

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She says prices may go up on her website, but it's important states see tax dollars for online purchases.

The next time you buy something online, expect to pay more. They often don't have the resources to handle the patchwork of sales taxes across multiple states, according to the retailers, while larger outlets like Amazon don't have that problem.

In turn, the US Government Accountability Office (GAO) said that sales taxes may generate $ 13 billion in revenues to local budgets. The estimate represented between 2 and 4 percent of total state and local sales tax collections in 2016, the analysts said. Justice Anthony Kennedy noted the difference between mail-order sales back then, which totaled around $180 billion, and ecommerce sales now. The Quill court ruled that the catalog seller didn't have to collect sales tax from North Dakota residents. Now, rivals will be charging sales tax where they hadn't before.

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