Supreme Court: States Can Collect Online Sales Tax

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Supreme Court: States Can Collect Online Sales Tax

Friday, July 27, 2018
On June 22, the Supreme Court ruled on South Dakota v. Wayfair overturning a previous ruling which made much of the internet a tax-free zone.

The recent Supreme Court decision in South Dakota v. Wayfair will require states to implement a tax collection system for online retailers, which will have the likelihood of creating a myriad of new challenges for self-employed entrepreneurs. Because of last
week’s ruling, millions of self-employed businesses offering their goods and services for sale online could now have to navigate a nightmarish web of compliance challenges.

The Government Accounting Office recently released a report showing that this ruling could cause the compliance costs for small businesses to skyrocket. Many of the small ‘Mom and Pop’ business owners we represent would incur the highest cost if Congress
doesn’t act.

It is essential to the livelihood of millions of small and family-owned businesses that Congress act now to provide compliance guidelines on how to proceed. This is not about money; rather, this is about compliance and tax filing and additional time-consuming
paperwork in up to 45 different states, many of which have hundreds of local jurisdictions that also generate separate compliance issues. Last week’s Supreme Court ruling is likely to have a drastic and devastating effect on the ability of millions of self-employed
Americans to start and grow their business. The small business community wants to comply with all laws but need simplicity in doing so. We must continue to support these entrepreneurs by providing them with an effective path forward to ensure they do not get
caught up in the maze of complex regulations that will hurt their business and ultimately hurt the American economy.

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https://www.nase.org/nase-in-action/legislative-action-center/2018/07/27/supreme-court-states-can-collect-online-sales-tax