Tech

Illinois Shoppers Pay More for Online Purchases, Good News for Small Businesses

Illinois Shoppers Pay More for Online Purchases, Good News for Small Businesses

Before this, the law stated that sales tax could only by collected from sellers with a physical presence within the state's borders.

The U.S. Supreme Court has ruled that a state can make retailers charge and submit taxes on goods they sell into that state, even if they do not have a physical presence in it.

US trade association the National Retail Federation (NRF) has welcomed a move by the US Supreme Court to overturn a decades-old tax ruling that has enabled many eCommerce players to avoid sales levies.

A recent loosening of states' sales tax collection affects purchases of products online.

Conservative Chief Justice John G. Roberts Jr. led the dissent, joined by three Democratic-appointed justices. In the fourth quarter of 2017, e-commerce sales increased to $119 billion, up more than 3% from the previous quarter and almost 17% from a year earlier, according to U.S. Census Bureau data. But when it comes to exactly how much of an impact the Supreme Court's ruling would carry, the department says it's too soon to tell. The retail industry is changing, and the Supreme Court has acted correctly in recognizing that it's time for outdated sales tax policies to change as well.

Prior to Wayfair v South Dakota, businesses that didn't have a physical location in a state were not required to remit sales taxes to that state government for their sales.

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South Dakota Attorney General Marty Jackley argued the case before the high court.

Castro said she was "quite content" with the court's decision, calling it a "huge win for our small businesses who really struggled to compete".

The high court ruled Thursday that states can require retailers to charge sales tax even if the retailer lacks a physical location in the state.

"This will go a long way to ensure local businesses are on a level playing field with online retailers", he said.

Quill is a precedent that traditional retailers have sought to overturn for 20 years - because they believe it gives e-commerce sellers an unfair price advantage. In criticizing Amazon and its founder, Jeff Bezos, who also owns The Washington Post, Trump said Amazon did not collect sales taxes.

South Dakota wanted out-of-state retailers to begin collecting the tax and sued several of them: Overstock.com, electronics retailer Newegg and home goods company Wayfair. That means the case will be sent back to South Dakota for a final decision.