The End of the Internet Tax-Free Zone?
Apr 09,2018
With South Dakota vs. Wayfair on the docket for the Supreme Court this month, the Court is expected to agree with South Dakota that it is time for the internet sellers to operate like brick & mortar stores and collect sales tax on all sales. However, there has been growing noise from some politicians and retailers opposing the possible decision. Click here to read a brief overview on the South Dakota vs. Wayfair case. For some politicians, they believe the determination of sales tax collection is a legislative matter. The Washington DC publication, The Hill, wrote on April 4: “A group of lawmakers that includes House Judiciary Committee Chairman Bob Goodlatte (R-Va.) and Senate Finance Committee ranking member Ron Wyden (D-Ore.) said in their brief that ‘it is for Congress — not the Solicitor General, this Court, or the States — to decide the best interstate taxation scheme for Internet sales’.” If the Supremes rule...
Sales Tax Alert for Online Retailers
Dec 19,2016
On Monday, December 12, 2016 the Supreme Court refused to hear a case challenging a Colorado law that requires online retailers without a physical presence in the state to turn over customer purchase data to state tax officials. While the Colorado law spurred the case, the ramifications of the Supreme Court’s refusal to hear the challenge will affect individuals and businesses in states across the U.S.BackgroundMany online retailers can sell to consumers without charging state sales tax on purchases; this is the result of a 1992 Supreme Court decision which held that retailers must have a physical presence (nexus) in a state before officials can make them collect sales tax. In essence the consumer has been liable for paying sales tax all along under the guise of a state “use” tax, but that rule has been widely and effectively ignored.In 2010, Colorado passed a law that required out of state...

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