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Supreme Court Rules That States Can Charge Online Sellers Sales Tax

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Today, the Supreme Court of The United States ruled that states can charge online sellers sales tax even if they don't have a physical presence in their state. For years, online retailers have been able to sell without charging their customers sales tax, which gave them a leg up over traditional brick and mortar stores. This is a big win for retailers that have a store front and could never avoid charging sales tax, it evens the playing field.

How states enact this on a state by state level is still to be determined. Many states today have put into legislation affiliate nexus laws, and the states that haven't will soon change to collect tax revenue. Small online retailers stand to take the most hit on this. From small website sellers to Amazon and eBay marketplace sellers, they'll soon have to charge sales tax. This will affect all kinds of sellers, including those that sell auto parts and don't currently charge sales tax.

 

States will be able to charge sales tax on online purchases thanks to the Supreme Court

Supreme Court Online Sales Tax

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It'll be interesting to see how this takes shape. Online sales are huge and a missed revenue source for some states.

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