The Supreme Court just voted to close a loophole that has seen American consumers dodge billions in sales tax on online orders since 1992. The justices voted 5-4 to overturn a 1992 ruling that said a company needed a “physical presence” in a state in order to be forced to collect sales tax at the time of purchase.
Although consumers have in theory always been liable for paying sales tax to their state and municipality for online orders, the reality is very different. States were missing out on around 25 percent of the tax from online sales, according to the Government Accountability Office, meaning $13 billion in missed sales.
Today’s ruling upheld a statute from South Dakota, which requires any company with more than $100,000 in annual sales to collect sales tax on sales made to customers in the state. In upholding the ruling the Supreme Court overturned a 1992 ruling that required a “physical presence” in a state in order to mandate collection of sales tax. However, nothing will actually change until states (or the federal government) enact new regulations to force the collection of sales tax. – READ MORE
[give_form id=”79809″] [contentcards url=”https://bgr.com/2018/06/21/online-orders-sales-tax-collection-rules/” target=”_blank”]