Post by microg on Jun 21, 2018 18:52:03 GMT -5
The US Supreme Court has overturned a tax-related ruling from 1992, freeing state and local governments to collect billions in internet sales tax, as reported by Bloomberg. The 1992 ruling from Quill v. North Dakota, focused on mail-order and catalog purchases, requiring that a business must have a physical presence within a state in order for the state to collect sales tax.
Writing for the court, Justice Anthony Kennedy said the 1992 decision was “unsound” and obsolete in the e-commerce era. As a result of this new ruling, internet retailers can be requited to collect sales tax in states where they have no physical presence. Estimates say that this broader taxing power will now let state and local governments reap an additional $8 billion to $23 billion a year in revenue.
www.theverge.com/2018/6/21/17488546/internet-sales-tax-supreme-court-online-retail-purchases-states-collect
What will that do for small businesses if they have to keep track of tax code for so many jurisdictions? While I suspect there are vendors that sell real-time, local tax information, I wonder if the costs for such a service will be low enough for internet "mom and pop" shops to survive.
