SD may see lower rate after sales tax ruling

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Soon after the South Dakota law passed, South Dakota took it to court with retailers Newegg, Wayfair and Overstock, alleging that the companies failed to comply with their state sales tax laws. It will leave shoppers with lighter wallets but is a big financial win for states.

In making the 5-4 decision, the court acknowledged but largely tossed out the internet companies' arguments.

"Sales tax doesn't make that big of a difference".

A decision Thursday from the U.S. Supreme Court could mean increased revenue for Kentucky.

An estimated $300 million in new revenue each year could be split among local governments throughout the state, a Georgia Municipal Association news release said.

The court decision could also be important in Florida because of the state's heavy reliance on sales-tax revenue.

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The court on Thursday revived a South Dakota law that requires retailers with more than $100,000 in annual sales in the state to pay a 4.5% tax on purchases. Amazon already taxes items from its own warehouses.

"The physical presence rule has always been criticized as giving out-of-state sellers an advantage". North Dakota standard that remote businesses need a physical presence to be taxed. However, Alaska and Montana allow individual individual cities to collect local sales taxes, according to the Tax Foundation. Those dollars are expected to provide $200 million a year for the IL state treasury according to estimates by the Department of Revenue.

"This ruling clears the way for a fair and level playing field where all retailers compete under the same sales tax rules whether they sell merchandise online, in-store or both", Matthew Shay, federation president and CEO, said in a statement. Third-party vendors on Amazon often don't collect the tax.

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.

A "quarter century of experience has convinced me" the Supreme Court's earlier decision was no longer justified, he wrote, adding that it was "never too late" to arrive at a better position.

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