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Jewelers Cheer Online-Sales-Tax Ruling
Jun 24, 2018 3:48 AM
By Rapaport News
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RAPAPORT... US states can now collect sales taxes from online retailers,
the nation’s Supreme Court has ruled.
The court overturned a 1992 decision that exempted companies
from the duty if they didn’t have a physical presence in the state. Traditional
retailers largely considered that status quo unfair, as, they claimed, it gave
e-commerce players a competitive advantage. Five out of nine Supreme Court
justices voted in favor of the change Thursday.
“This historic decision from the court in
support of sales-tax fairness is a major victory for the jewelry industry,
providing a clear path to level the playing field between traditional and
online retailers,” said David Bonaparte, CEO of Jewelers of America.
Congress must now pass federal legislation
that lays out the rules for collecting sales tax, the jewelry trade
organization, which has long campaigned for the reform, added.
The case, South Dakota v. Wayfair, arose after South Dakota enacted
a law requiring out-of-state sellers to charge customers sales tax as if the
retailers had a physical presence in the state. South Dakota sued certain
online retailers that, it claimed, should be paying the duty, as they met the
act’s requirements of at least $100,000 in annual sales to — or 200
transactions with — South Dakota residents.
The e-tailers then claimed the state’s law was
unconstitutional. They were successful in state courts, which relied on the
1992 precedent of Quill Corp. v. North Dakota. However, the Supreme Court has
now overturned Quill.
Shares in Overstock, one of the US’s largest online
retailers, fell 7% Thursday following the ruling. Amazon stock dropped 1.1%
during the day.
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Tags:
Amazon, David Bonaparte, e-commerce, E-Tailers, ja, Jewelers of America, law, overstock, Quill Corp. v. North Dakota, Rapaport News, retail, sales tax, South Dakota, South Dakota v. Wayfair, supreme court, tax, US
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