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Example: State A has a tax on food. State B does not. Citizen from State A goes to State B to buy their groceries. Can State A now sue State B to collect a tax on those who come from State A?
For the record, I do this. I live on the WV/Ohio border. I work on the border. It's as close for me to drive home through either state. If I feel like grabbing something to eat on the way home, I'll go through a drive through in Ohio to avoid the tax in WV.
The restaurant will even obviously have a presence in WV.
If you are physically going into a store you follow the rules of the state where you are shopping. This is a sales tax not income tax.
Again I’m concerned about the small sellers. Hopefully there is a carveout.
If you are physically going into a store you follow the rules of the state where you are shopping. This is a sales tax not income tax.
Again I’m concerned about the small sellers. Hopefully there is a carveout.
The carveout will be the big guys taking over the little ones as they can afford the cumbersome requirements. This is the exact thing that happened with banking.
I am surprised that Neil Gorsuch voted for this trash. This is going to CRIPPLE small business .....This is another win for corporate America.... what a disaster for our economy.
and again, this is NOT a new tax, it's simply saying that rather than relying on consumers to declare these purchases and pay the sales/use tax on them directly, they are going to have merchants collect the tax to remit to the state, just like brick and mortar merchants do - including all of those small businesses with physical locations.
Justice Anthony Kennedy wrote that the previous decisions were flawed.
“Each year the physical presence rule becomes further removed from economic reality and results in significant revenue losses to the States. These critiques underscore that the physical presence rule, both as first formulated and as applied today, is an incorrect interpretation of the Commerce Clause,” he wrote.
In addition to being a win for states, the ruling is also a win for large retailers, who argued the physical presence rule was unfair. Retailers including Apple, Macy’s, Target and Walmart, which have brick-and-mortar stores nationwide, generally collect sales tax from their customers who buy online.
Kennedy doesn't even understand the Commerce Clause. The whole purpose of the Commerce Clause was to give Congress the power to intervene, if one State engaged in unfair economic practices against another State.
An example would be if the State of Iowa levied a tax on corn from the States of Indiana and Ohio in order to encourage consumers of all classes in Iowa to purchase corn grown in Iowa to the advantage of Iowa farmers.
Without the Commerce Clause, there is no legal or constitutional remedy for such an unfair practice, but the Commerce Clause gives Congress the authority and power to intervene to remedy the situation.
In any event, the US Supreme Court already ruled in an earlier case more than 20 years ago that regular mailings to individuals or businesses in a State constitutes a physical presence in the State.
By the same logic, Wayfair or Amazon or any other who notifies consumers of any class of sales events or special offers or any other notifications via electronic mail also constitutes a physical presence in the State.
and again, this is NOT a new tax, it's simply saying that rather than relying on consumers to declare these purchases and pay the sales/use tax on them directly, they are going to have merchants collect the tax to remit to the state, just like brick and mortar merchants do - including all of those small businesses with physical locations.
some small business with 200k in sales on the opposite end of the country, should not have to collect and submit taxes in a far away state. Congress needs to create a sales tier for this. All the broke states will will be like vampires to suck away money.
Just wait until you need to be in compliance with Jersey! I am still trying to pay off tax bills, file the right forms, fill out the right paperwork, and pay all the "fees" associated with ONE business transaction over a year ago. Good luck!
Hmm.. I wonder if I can block state-wide IP addresses, like I did with the EU and their GDPR foolishness.
I am hoping each state will create some type of tier system to shield small proprietors. But I won't hold my breath.
The Supreme Court voted 5-4 to allow states to collect sales taxes from online sales, regardless of whether a retailer has a "bricks and morter" presence in the state.
This is the right decision, regardless of how much people like "free stuff," because the inability to impose sales taxes equally to all retail vendors makes retailers with a local presence less competitive due to higher costs. The playing field should be level for everyone.
I agree, but I hope it's LIMITED. What would be bad:
1.) This opening the door to states issuing other Internet taxes (i.e. usage taxes).
2.) Someone being able to issue HIGHER taxes for online sales (kinda like a protective tariff only it's a tax)
Thus, I would hope the ruling did something to stop the above two things from happening.
Of course now brick and mortars along state borders have an advantage unless something is done about Use Tax. It seems , for instance, NYC could sue businesses in Jersey City for not charging sales tax based on the residence of the shopper.
That actually is ANOTHER thing that worries me. It could lead to a legal mess where eventually the Feds step in to "fix" it by having a national Internet sales tax, of course,leaving the door open for other things like a usage tax, etc, as well.
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