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In its 5-4 decision, the court struck down the concept that online retailers operating in many states needed to collect state sales taxes only when the retailer had a physical presence in the state. “The recent Supreme Court decision in South Dakota v. Wayfair requiring online retailers to collect sales tax presents a myriad of new challenges for self-employed entrepreneurs,” Keith Hall, president of the National Association for the Self-Employed, said in statement. “… Millions of self-employed businesses offering their goods and services for sale online could now have to navigate a nightmarish web of compliance challenges.” But others see the court ruling as simply leveling the playing field in interstate commerce. For decades, they say, out-of-state online retailers have had tax advantages over brick-and-mortar stores, which have no choice but to pay a state’s sales tax. The National Conference of State Legislatures (NCSL) called the decision a victory for traditional retailers. “Brick-and-mortar stores will no longer be penalized for collecting the tax revenues that fund our schools, infrastructure and the vital public services that the state and local governments provide,” NCSL President Deb Peters said. “Good tax administration is good public policy, and state officials look forward to working with all stakeholders in the coming months as we move forward to level the playing field for all of our nation’s retailers.” The NCSL also does not see Congress stepping in to standardize how state tax regimes operate so that online retailers are not overly burdened by the complexities of the different state tax rules. “I do not see the appetite on Capitol Hill to pass any sales tax legislation, let alone in an election year,” NCSL spokesman Mick Bullock told Watchdog.org in an email. “After all, Congress failed to act for 26 years – why would they now?” Groups representing small businesses, however, say smaller online retailers will be hurt most by the Wayfair decision. The South Dakota sales tax system, which the high court upheld in its ruling last month, applies to out-of-state retailers that deliver goods or services worth more than $100,000 into South Dakota.
For the original version including any supplementary images or video, visit https://www.watchdog.org/national/congress-not-expected-to-act-as-supreme-court-sales-tax/article_d37cfe2c-838a-11e8-896c-4bbe9f654e19.html
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