Thousands of small companies may have to start charging sales tax to their out-of-state customers after the U.S. Supreme Court ruled Thursday that states can force online shoppers to pay it.
The 5-4 ruling is a win for states, who said they were losing out on billions of dollars annually under two decades-old Supreme Court decisions that impacted online sales tax collection.
South Dakota filed a lawsuit against several online retailers in 2016 based on a law passed that year that requires out-of-state sellers who exceed revenue or transaction thresholds to comply with state sales tax laws.
Governor Dennis Daugaard says he cheered when he heard of the high court’s ruling:
OC………… a win for fairness. :20
South Dakota has no state income tax and depends heavily on sales taxes.
Bob Krist, Nebraska’s Democratic candidate for governor and a former state senator, says Nebraska will have to wait until next year before enacting a means to collect the tax:
OC…………..take advantage of it. :25
Nebraska Governor Pete Ricketts released a statement saying “any increased revenue attributable to total enforcement of our property tax laws must be steered towards property tax relief”.
Ricketts says he’s reviewing what the court decision means for Nebraska.