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Major Supreme Court reversal

Discussion in 'Economy' started by Biker, Jun 21, 2018.

  1. Biker

    Biker Administrator Staff Member

    Supreme Court lets states force online retailers to collect sales tax

    Watch the scramble as most states start clamoring for their share of the sales.
     
    Allene likes this.
  2. Arc

    Arc Full Member

    The split of the of the court was rather unique:

    Associate Justice Kennedy was joined by liberal Justice Ruth Bader Ginsburg and conservatives Samuel Alito, Neil Gorsuch and Clarence Thomas. The conservative chief justice, John Roberts, dissented along with liberals Stephen Breyer, Sonia Sotomayor and Elena Kagan.

    A mix split of this type I doubt you will ever see again from this court on a high-profile case, and probably not on any case.
     
    Allene likes this.
  3. ethics

    ethics Pomp-Dumpster Staff Member

    It's not a political issue and one that doesn't have much ramifications to immigrants or the POOOHR. :)
     
    Allene likes this.
  4. SixofNine

    SixofNine Jedi Sage Staff Member

    Most of my online buying is Amazon, and they already charge state sales tax.
     
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  5. Biker

    Biker Administrator Staff Member

    Amazon has a physical presence in many states, which would require them to collect sales tax from that state. This SCOTUS ruling changes all that where a company no longer needs a physical presence in a state in order for the state to demand it collect a sales tax.
     
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  6. SixofNine

    SixofNine Jedi Sage Staff Member

    Yep, that's the core of the ruling, but my point is that even if Amazon doesn't have a retail presence in Virginia (they certainly have a business presence with their public sector practice), I was already paying state sales tax for the vast majority, if not all, of my online purchases.
     
    Allene likes this.
  7. Arc

    Arc Full Member

    I don't keep a close score on tax or no tax items I get from Amazon. I use them frequently and am a Prime Member. But I would say in the majority of purchases I make in California I pay no tax. A quick cursory check shows I average about 50 orders a year.
     
    Allene likes this.
  8. MemphisMark

    MemphisMark Old School Conservative

    This ruling is going to severely hurt the small business with mail-order business because there are 3,031 counties in the US. Each of them will have a different sales tax level, then there will be towns that might tack on a tax as well.

    Tennessee has a 7% State sales tax on non-grocery items, 5% on groceries. Shelby County, has a 2.25% sales tax on top of that, up to $1,600 purchase price. The towns of Bartlett, Collierville and Germantown have either a 0.5% or 0.75% sales tax on top of the state and county tax to pay for their local school districts.

    Multiply that by 3,031 and you have a headache for a mom-and-pop store in Podunk, Idaho and a reason why it may stop selling on-line. Unless, of course, you let Amazon sell your stuff for you. They have tons of accountants to keep track of the tax rates by your address....
     
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