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Sales Tax Laws in all states


(Charlotte Fitzgerald) #1

Does the Supreme Court ruling mean we will have to file sales tax in all states?


(Lavina Blossom) #2

My tax preparer advised me not to charge sales tax—although this was in 2017. I Cannot recall the term he used, but the fact that I paid sales tax on all the supplies I used to create each art piece figured in.


(Connie McLennan) #3

Not yet.

“The Supreme Court’s decision allows states to choose how they collect tax from online sellers, and how aggressively. South Dakota, for example, requires online retailers to make $100,000 or more in sales in the state before paying sales tax, which would rule out a lot of small retailers. But Washington state has a specific provision for marketplace vendors and the platforms they sell on if they earn $10,000 or more in retail sales.

Online retailers that host small businesses, like eBay and Etsy, would be responsible for collecting the sales tax, said John Buhl, spokesman for the Tax Foundation, a think tank based in Washington, D.C. Small businesses selling goods on these sites will charge their customers any additional sales tax. Sellers may also see increased administrative costs as they manage this new sales tax regime.

These internet retailers are now looking to Congress to standardize the ways in which they must collect and pay sales tax. ‘Today’s ruling is limited to large online retailers and confirms that small businesses are clearly viewed differently by the court,’ eBay said in a statement to MarketWatch. ‘Now is the time for Congress to provide clear tax rules with a strong small business exemption.’”