THIS IS AN ARCHIVE OF LAKE TAHOE NEWS, WHICH WAS OPERATIONAL FROM 2009-2018. IT IS FREELY AVAILABLE FOR RESEARCH. THE WEBSITE IS NO LONGER UPDATED WITH NEW ARTICLES.

Supreme Court declines online sales tax case


image_pdfimage_print

By Robert Barnes, Washington Post

On one of the busiest online-shopping days of the year, the Supreme Court declined Monday to get involved in state efforts to force Web retailers such as Amazon.com to collect sales tax from customers even in places where the companies do not have a physical presence.

The multibillion-dollar issue — which could end tax-free online shopping for many Americans — is one of the most important in modern retailing. Traditional bricks-and-mortar businesses say the online retailers receive an unfair advantage by not having to collect sales taxes in some areas.

It is the second time the court has opted against hearing such a challenge.

All but five states impose sales taxes on purchases, whether online or not, and an increasing number have passed legislation to force online retailers such as Overstock.com and eBay to begin collecting those taxes from customers.

The court’s decision to stay out of the issue for now may put more pressure on Congress to come up with a national solution, as both online and traditional retailers complain about a patchwork of state laws and conflicting lower-court decisions.

Read the whole story

image_pdfimage_print

About author

This article was written by admin

Comments

Comments (5)
  1. dumbfounded says - Posted: December 4, 2013

    Some online business doesn’t have to collect taxes and some do? Do brick-and-mortar retail stores have the same choice? Consistency is important to capitalism.

  2. Moral Hazard says - Posted: December 4, 2013

    dumbfounded, sales tax is collected for a state where a business has either property payroll or sales. Any combination of the two creates nexis.

    Brick and mortar companies don’t pay shipping. So from a competition standpoint, its probably about fair.

  3. Lisa Huard says - Posted: December 4, 2013

    I enjoy shopping online more and more. I do try to shop locally but when I can’t find what I’m looking for in Tahoe, I go online. Here’s the bottom line as I see it. We can’t have decent infrastructure if the taxes that pay for them do not come in. Brick and mortar have to charge sales taxes and pay those. Shipping is paid by the purchaser in the long run. If it says “free shipping” the cost is factored in somewhere else. All online purchasers should pay taxes. I appreciate the fact that everyone wants to get things as cheaply as they can but we get what we pay for. If taxes are not collected then projects such as road maintenance can’t get done. Purchasing products is a privilege and no one is forced to do so. I live in California and I do pay sales taxes with every purchase. I want my money to work in my community and in my state. I believe “what goes around, comes around.”

  4. BitterKlinger says - Posted: December 4, 2013

    My online purchases have increased over the years. Two things I have noticed.

    1) It’s way more convenient for most purchases

    2) The shipping cost is usually the equivalent of the sales tax not charged.

    Seems to me that traditional retailers are crying foul because they’re business model is being challenged by online retailing.

    Finally, it’s not as if government doesn’t have enough of our money. Giving the government any more money is like feeding rats in your basement.

  5. Moral Hazard says - Posted: December 4, 2013

    Lisa, if I am a New York retailer and I ship to California, why should I pay sales tax. I don’t use the roads. I don’t have employees there using the schools, I am not regulated by California, but rather by New York. What exactly is happening in that scenario that would have the merchant pay the tax.

    Now the consumer is responsible for paying use tax. Do you pay yours? It is the law that you do.