How the Supreme Court Online Sales Tax Ruling Impacts Consumers & RetailersYou may have heard about the Supreme Court’s online sales tax ruling last June— but did you realize how the ruling would affect you and retail giants alike? We’re deep-diving into the details from the June 2018 Supreme Court online sales tax ruling and discussing how it impacts everyone involved— from Amazon shoppers to retailers like Zappos and Overstock.
What happened: the long and short of it
- A 1992 regulation permitted online retailers to avoid collecting sales taxes if they didn’t have a physical presence in the state.
- In June 2018, the Supreme Court overturned this regulation— requiring online retailers to start collecting sales taxes (even if they don’t have a physical presence there).
- Amazon remains less affected because they already collected said sales tax from their online sales.
- Conversely, other online retailers have faced a more challenging adjustment to this ruling.
- Consumers, retailers, and state governments are all impacted in different ways by the Supreme Court’s ruling on online tax collection.