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NRF Says Supreme Court Sales-Tax Ruling Levels the Playing Field

National Retail Federation

National Retail FederationThe National Retail Federation (NRF) hailed today’s Supreme Court ruling on sales tax in South Dakota v. Wayfair. While online marketplaces eBay and Etsy see the issue as a big retailer versus small seller issue, the NRF says today’s ruling creates a fair and level playing field between online merchants and local retailers.

The retail trade association argued in a friend-of-the-court brief last year that the court’s 1992 Quill Corp. v. North Dakota decision was outdated and that sales tax collection is no longer the burden it might once have been due to changes in technology.

You can read more about this morning’s Supreme Court ruling on the AuctionBytes Blog.

Press release follows:

The National Retail Federation issued the following statement from President and CEO Matthew Shay in response to a U.S. Supreme Court ruling in South Dakota v. Wayfair allowing states to require online sellers to collect sales tax the same as local stores.

“Retailers have been waiting for this day for more than two decades. The retail industry is changing, and the Supreme Court has acted correctly in recognizing that it’s time for outdated sales tax policies to change as well. 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.”

The court this morning upheld a 2016 South Dakota law that requires online merchants with more than $100,000 in annual sales to state residents or 200 transactions with state residents to collect sales tax.

NRF argued in a friend-of-the-court brief last year that the court’s 1992 Quill Corp. v. North Dakota decision was outdated and that sales tax collection is no longer the burden it might once have been due to changes in technology. In the brief, NRF cited a wide variety of software available to automatically collect the sales tax owed, much of its available free or at low cost.

NRF and other retail groups said in a second brief filed this year that lack of uniform collection is “inflicting extreme harm and unfairness” on local retailers by “distorting the retail market in favor of absentee ecommerce.”

The court agreed, noting “It is unfair and unjust to those competitors, both local and out of State, who must remit the tax; to the consumers who pay the tax; and to the States that seek fair enforcement of the sales tax, a tax many States for many years have considered an indispensable source for raising revenue.”

NRF has been a leading voice for equal sales tax rules for years, saying that Quill gave online sellers an unfair price advantage over local merchants.

Learn more here.

SOURCE: National Retail Federation Press Release

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.

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Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.

8 thoughts on “NRF Says Supreme Court Sales-Tax Ruling Levels the Playing Field”

  1. These people are brain dead. If they think because the buyer will now have to pay sales tax on their purchases they might want to think again. We buy 90 percent of our wants and desires online. There is no way we are returning to overcrowded malls with foul salespeople and higher prices to buy. Retailers have lost their niche and its not going to come back. Paying sales tax on an item is a lot cheaper than buying gas for a car to get to their miserable store. So retailers, Lots of luck with that excuse.

    And how many times have you been in a store and wanted something only to have the idiots tell you they don’t have it because you will have to order it online. Well baby needs some new shoes and we are out of mustard so I’m off to go shopping ON LINE.

  2. Its called adapt or die. I am puzzled that somehow me not collect sales tax gives me an unfair advantage. A store purchase gives you the item instantly. A ecommerce item you have wait to get gratified. We also have to pay for shipping in most cases. Many people buy online from me because they can’t get their size, or color in a store, or live two hours from a mall. Some of my elderly customers have limited mobility. Finally I stock brands that the major retailers either won’t sell or quit selling. I am giving my customer a choice

  3. Despite a corrupt Supreme Court “ruling”,
    It is UNLAWFUL to lay or collect sales tax on articles / items sold over a state line.
    US Constitution :
    Article 1.
    Section 9.
    Paragraph 5.
    ” No Tax or Duty shall be laid on Articles exported from any State.”
    There has been NO LAWFUL undertaking to amend the Constitution.
    Therefore, there is NO imperative to collect this illegal tax, lest you be imprisoned for willful contempt.
    Only unwitting dupes will comply.
    https://www.archives.gov/founding-docs/constitution-transcript

  4. “[…]NRF cited a wide variety of software available to automatically collect the sales tax owed, much of its available free or at low cost.”

    Does anyone know where I can get this free or low cost software? I’ve read about such software costing $3,300 per year or more!

  5. NBg multinational corporations, who hide millions in assets from taxation and take from the American taxpayer, whether it is tax breaks or services, solicited Supreme Court justices to destroy small business for them and break the law.

    Money talks.

  6. ““[…]NRF cited a wide variety of software available to automatically collect the sales tax owed, much of its available free or at low cost.””

    LOL. These representatives of big, wealthy, tax cheat corporations admitted it will be very costly for small business who will not be able to compete.

    Small business pays a higher tax rate on income too.

  7. Nrf are idiots supreme. This doesnt level anything because brick and mortar stores dont have to pay taxes to other states.

    At least..not yet..if this all goes through..i will make every store chsrge taxes for my city regardless of where i shop. If they refuse ill turn their business onto theirvsyates and my states and the fbi for tax evasion.

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