South Dakota leaders celebrate historic Supreme Court ruling

Galtero Lara
Junio 24, 2018

Today the Supreme Court upheld South Dakota's law, with a 5-4 decision that states could, indeed, force sales taxes on residents' online purchases from out-of-state retailers. South Dakota had passed a bill in 2016 that said online retailers must collect sales tax if they make more than $100,000 worth of sales in their state, or do 200 transactions in their state. Other retailers-including Etsy, eBay, and Wayfair-are also seeing huge stock dips. But that money is likely to come out of the pockets of consumers.

Governor Eric Holcomb said he wants to take a look at what the ruling will mean for IN, and the taxes collected here. South Dakota took him up on the suggestion. Now, some companies had, like Amazon had been remitting the sales tax to us already on internet sales. Amazon was down almost two percent, although Amazon may be one of the least-affected retailers.

Trump has bashed Amazon CEO Jeff Bezos, who also owns the Washington Post, a newspaper that the Republican president has disparaged for its coverage of him.

The new rules will complicate matters for sellers in Minnesota, but the state Department of Revenue said it would issue more guidance on the matter in 30 days.

"Main Street retailers that employ your neighbors, pay property tax and support the little league team and high school band have always been required to collect sales tax that online stores did not, putting them at an automatic disadvantage", association President Andy Ellen said in a statement. Writing for the majority, Justice Anthony M. Kennedy said that the tax rules had distorted the economy by favoring one group of merchants over another and allowed online retailers to avoid state and local taxes in the range of $8 billion to $33 billion a year.

Teachers gather on the south side of the Capitol as they finish their 110 mile walk from Tulsa during the ninth day of a walkout by Oklahoma teachers at the state Capitol in Oklahoma City, Okla. on Tuesday, April 10, 2018.

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The law could yet face legal challenges on other grounds, Kennedy noted.

Shares of major retailers that have a sizeable presence online as well operating brick-and-mortar stores responded positively.

"Consumers will quickly feel the negative effects as those businesses dry up or are forced into the arms of Internet giants", he added. Marketplace sellers weren't previously required to automatically collect sales tax on their sales, and the ruling may hurt their sales.

According to a federal report, the Supreme Court's decision could see states netting around $13 billion in taxes annually.

Rauschenberger says the 1992 case allowed hundreds of millions of dollars in taxes to go uncollected, putting businesses in the state at a disadvantage.

The original 1992 ruling from Quill v.

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