Latest US Supreme Court decision could hit SC wallets. Here's how

Judy Cobb
June 22, 2018

Stare decisis can no longer support the Court's prohibition of a valid exercise of the States' sovereign power.

While some online sellers recently have started collecting sales taxes, others, like L.L. Bean, do not.

Online shoppers could find costs going up after the Supreme Court did away Thursday with a decades-old precedent limiting the ability of states to collect sales tax on certain out-of-state Internet purchases. "Whereas mom and pop brick and mortar businesses were", Lesser said.

"The Republican governor was joined by the state's top Democrats, who called the ruling "devastating" and disastrous". Wayfair Inc., an online retailer of home goods and furniture that challenged the South Dakota law, had more than $4.7 billion in net revenue in 2017, according to the opinion. For example, a business that maintains a few items of inventory in a small warehouse in a State is required to collect and remit a tax on all of its sales in the State, while a seller with a pervasive Internet presence can not be subject to the same tax for the sales of the same items. This went against a 1967 Supreme Court ruling, but to be fair, that ruling was based on mail-order retailers, and the basis of the court's ruling was essentially "Look, it's not like people are buying everything through the mail!" The law was not retroactive, Kennedy pointed out.

"Forty-one States, two Territories, and the District of Columbia have asked the Court to reject Quill's test", today's ruling, written by Justice Anthony Kennedy, also said.

That lawsuit has yet to materialize. Today, the retail giant collects taxes in every state that has a sales tax.

It's not the first time New Hampshire's leaders have mobilized against a potential internet sales tax. North Dakota, which said mail orders from out-of-state companies didn't have to add sales tax.

The ruling likely will result in many consumers paying more for online purchases. Forty-five of the 50 states impose sales taxes.

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For a large state like Texas, the combined state and local revenue growth could be as high as $1.2 billion per year and will likely grow over time, Walsh said.

In a statement Thursday, the company urged Congress to create standard rules across the country with a small business exemption.

E-commerce now makes up about 10 percent of US retail sales, according to the Commerce Department.

"As in so many other areas, technology has evolved faster than the law and left us with at times weird, unfair results", she said. But the tax is not applied to "third-party" sales through the Amazon network.

Carlyle said it was too soon to tell if lawmakers would streamline Washington's new law in the 2019 legislative session by fashioning it after South Dakota's direct approach, instead of Colorado's multiple-choice offer.

Until now, many sellers that have a physical presence in only a single state or a few states have been able to avoid charging sales taxes when they ship to addresses outside those states.

What money that could bring is unclear, he said. She says the court decision will "level the playing field for IL brick-and-mortar retailers". Rolfes is the top budget writer for Senate Democrats, who hold a majority in the chamber.

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