The ruling puts online sellers at a disadvantage. So now whether you buy locally or online you pay both local tax and shipping costs. The catch is that local retailers pay only bulk freight rates while online shoppers pay much high shipping costs. If the shipper does not charge for shipping he is including shipping cost in the item price.

Creating a federal sales tax could be the next way for the federal government to start another form of tax collection and start the path toward a flat tax and I would bet if created it would be in addition to all the highly variable state sales taxes currently being in use for state revenues.
And yes all these moves create more security and less competition for the mega sized organizations.

Bryce

Yep. Just a NEW tax . All the others will likely stay in place

So when are states allowed to make this effective? Right away or at a certain date.

You're ignoring the countless brick and mortar small businesses that can't compete with online retailers, part of the reason being the sales tax differential.

However, I agree with the dissent. Most people have no understanding of the commerce clause or how that is at play here. Online sales are similar to mail order retailers....which were the basis of the original rationale. Without a physical presence in a state, commerce through the mails doesn't create sufficient nexus with that state for the grasp of the state's sales tax to reach the business. Convenience of the state has no bearing on that rationale, and it is still valid. Purview of congress to change it, not the Court.

Hal is right. My wife and I owned retail fishing and hunting stores for 27 years. Out of state mail order and then the internet affected our business in a big way, and eventually helped make our decision to hang it up. People would take our time in the store and then go home and order out of state.

I don't trust the gov to set up a new national tax like here in Europe, but it will probably have to be.

In my mind it is just way too late. I remember it was Al Gore, (inventor of the internet), who wanted to give e-commerce a tax break so they could get off the ground. In hindsight that's an amazing concept.

Pete

This is a great ruling IMO just makes it a fair choice and evens out the playing field for the down town businesses. Small town USA is disappearing any way but this may help anyway I'm hoping it will help. The tax money will help those states that have a tax a good deal.

It's only fair. And, as said above, the brick and mortar stores are often used as a place for us to get a good look and our hands on the things we want to buy, while we go home and buy them cheaper and save the sales tax on line.

The malls killed the down town businesses. Walmart and on line sales are killing the malls----Capitalism at work.

That's killing the small sporting goods shops as well as the "gotta have the next new thing" mentality by the younger consumers. Makes it tougher especially for bow shops to keep good inventory when a new tech bow that's hung there for a year plus becomes a pariah to the owner.

Tough to make a living selling bait.

Here's how one sports shop is still making it in Prairie du Chien. What do you see plastered all over the front windows? Used to be mostly sporting goods equipment inside. Now rows of liquor take up at least half the store. The Iowa customers load up their trunks and away they go.

http://www.starkssportshop.com/

Those of you who remember the old Starks may recall the blocks and blocks of new and used boats they had near the store. Not much there now but Alumacraft. The used boat market was killed by Craig's List. Used to be a fella would take his boat down there to trade it in.

For those of you who think this is a "fair" thing and a good idea that "levels the playing field"...ask yourself why Amazon has employed over 100 lobbyists at a dozen firms, for several years.......while spending 13 BILLION per year lobbying in favor of this taxation ? Meanwhile, smaller entities like Etsy and Ebay have been opposed to it.

These guys say it will help Mom&Pop stores. Not sure if they are affiliated with Amazon or not lol. Link to Fox page on e-commerce sales tax.

It is clearly NOT pro-consumer. It may help brick & mortar mom & pop outfits initially. But eventually they will fall to Amazon.

Also consider this.

Let's say I buy a product from an online seller in CA. He then sends my electronic order to a supplier in MO, who send s it to me. Why does CA have authority to tax me ? CA has provided nothing to me for the taxes I pay them. It is the classic case of taxation without representation. CA has done nothing, and provided nothing to facilitate this sale or the manufacture of this product. It is no different than the mafia taking their vig on every transaction.

A far better solution would be for a state to promote competitiveness by eliminating sales tax completely. But that will never happen

The state that will be taxing you, is the state where the buyer is located, to be sure.

Thanks Pass-thru. I agree with your previous post and agreement with Roberts. The courts are not the correct venue for this to be decided.


So do you think that states with no sales tax, will now institute one to cash in on this decision ?

taxation is theft.

For anyone that might know, what are the taxes for purchases from out of the country?

For example, could I set up a type of middle man company that I order from x website through. The middle man company would be based based outside the country, then just basically drop ship the order to my address in the states. So billing address does not have a state tax associated with it.

Just a good example of what a conservative supreme court will approve. They know where the political money lies and if they can help conservatives win they will hold the court and any use tax hits lower income people more than wealthier persons or companies.

Bryce

So is inflation.

White, although I agree with a lot of what you say I don't see how this will harm the local brick and mortar stores.

Of course I could be wrong but here's the way I see it happening;

This decision will benefit brick & mortar stores ONLY by increasing costs of online business.

Retailers that collect sales taxes keep a tiny portion of those taxes. But Amazon.....based just on sheer volume...will actually make more money by keeping a portion of those tax dollars and may/could use that new income to reduce prices. Eventually, both brick & mortar and online small businesses will succumb to Amazon's ability to under price them.

Surely, Amazon would not spend billions to "level the playing field" if there was no benefit to Amazon. IMO it is all about eliminating competition.

True White.

(here we keep 1% of the sales tax we collect) Not sure about other states.