Sales Tax News Blog Posts
Massachussetts’s Attempt to Retroactively Collect Sales Tax Results in Lawsuit
Since June 2018, there has been a surge of legislation and corresponding litigation around the implementation of new sales tax laws. While many states are implementing new laws that go into effect this year, others have had economic nexus laws in place since well before the Wayfair ruling. Massachusetts is one of those states, having passed a law in October 2017 that required out-of-state online retailers to collect sales tax. This alone isn’t out of the ordinary. More than a dozen states had similar laws on the books before Wayfair, and many online retailers opted not to comply, citing previous… Read More
The US Supreme Court Overturns “Quill” Ban on Online Sales Tax
In a 5-4 decision announced on Thursday, the Supreme Court overturned a 1992 ruling in Quill vs. North Dakota that explicitly banned states from taxing companies that don’t have a physical presence within their borders. The ruling came in the case of South Dakota vs. Wayfair, as South Dakota attempted to overturn the previous ruling. South Dakota cited their losses in not being able to collect sales tax on online sales, totaling nearly $50 million a year, and the Government Accountability Office citing nearly $14 billion in total missed tax revenue for all states. The case was a divisive issue… Read More
The Facts about the Oregon Tax on Healthcare
A controversy is brewing in Oregon surrounding a bill that passed the state legislature last June and that involves taxes on certain health insurance plans and health care organizations. While the original bill passed with bi-partisan support, its opponents didn’t give up the fight, and now the measure is facing a potential repeal vote in an upcoming special election. The Original Bill House Bill 2391 passed the Oregon state senate by a vote of 20-10, and was promptly signed into law by Governor Kate Brown. The measure was developed as part of a compromise to try and close a $1.4… Read More
How Service Taxability is Changing in 2017
When sales taxes first went into effect in the 1930s, they generally only applied to the purchase of physical property. This reflected the nature of the economy, but many things have changed since then, including the number and types of services available. This has led states to reassess whether to tax services and which ones to tax. Many states now do consider at least some services to be taxable, and that list looks to continue growing over time. Taxes on Services As a rule, services used to not be taxed if they were pure services. That means that the service… Read More
2016 Presidential Candidates: Where Do They Stand on Taxes?
As we discussed in "Is Sales Tax Fair?", FairTax™, Marketplace Fairness Act and other issues affecting ecommerce retailers are hot topics as the 2016 Presidential election draws near. There is still a wide selection of candidates and where they stand on these matters is an important topic for all voters, especially small business owners. As states implement ways to add more taxes, the sweeping reforms suggested by these presidential hopefuls could either help or harm online retailers. Today, we’re going to take a look at where each of the candidates stands on matters of income tax, sales tax and related… Read More
9 Ways That Declining Gas Taxes Cost Us Money
As summer approaches, many of us are looking to the horizon, ready for vacation. But if you’ve been on a road trip recently, you may have had to endure some less-than-perfect driving conditions. Our roads and highways are one of the infrastructure items that are paid for with taxes. But declining revenues mean that states are struggling to pay for roads, both new ones and repairs to existing roads. From New Jersey to New Orleans, a battle is raging over how to pay for construction and road projects. The struggle to find revenue has been going on for years, but… Read More
Could the Supreme Court Take Internet Sales Tax Into Their Own Hands?
The debate over online sales tax is a heated one, with legislators and lobbyists split as to which side of the issue they agree with. Retailers have sat in limbo – some anxiously waiting, some supporting the tax, others doing their own grass-roots lobbying against the idea. But another approach may be on the horizon. In a groundbreaking statement, Supreme Court Justice Anthony Kennedy has called for supporters of an internet sales tax to bring a case before the SCOTUS that would allow the court to reexamine the 1992 Quill Corp. v. North Dakota decision. This came about during the… Read More
A New Internet Sales Tax Alternative – the Online Sales Simplification Act
After years of discussions, back-and-forth, pros and cons, supporters and naysayers, it looks like the Marketplace Fairness Act might be dead. But the government hasn’t given up on the idea of taxing internet sales across state lines. In fact, so many businesses are in favor of Marketplace Fairness that in some shape or form, online sales tax is still very likely to happen. And the latest iteration of that is a discussion draft called the Online Sales Simplification Act. If you’re familiar with the Marketplace Fairness Act, then the name behind this bill will be familiar. It’s spearheaded by House… Read More