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June 22, 2018

About 16 states already have laws that will let them require tax collection by internet retailers in the coming months, and more could follow quickly.

IN is set to begin collecting sales tax on most online purchases after a ruling Thursday by the Supreme Court of the United States cleared the way.

For years, brick-and-mortar chains have complained of an uneven battlefield in the e-commerce wars, saying they had to charge and collect sales taxes everywhere while e-commerce rivals did not, except in states where they had a physical presence such as a distribution center or a store. "With the incredible evolution of technologies and the growth of internet sales, this Supreme Court ruling will help level the playing field between our Hoosier-based companies that operate retail stores and out-of-state companies that sell products and services online in our state".

Hearst told 22News major online retailers like Amazon do collect a sales tax, but most of their sales are from third party sellers. This ruling is likely to lead other states to start requiring sales tax from online retailers, which in turn will be required from the consumer at checkout. Physical stores have always had to charge sales tax, but many online retailers have been able to undercut them by ignoring sales tax. Businesses that want to begin collecting the taxes right away, and send them to the state, can register with the department. "We think that incentive, that carrot if you will, is strong enough to clean up our state and local sales tax codes", McCarthy said. Justices Ruth Bader Ginsburg, Clarence Thomas, Samuel Alito and Neil Gorsuch joined his opinion. Marketplace sellers weren't previously required to automatically collect sales tax on their sales, and the ruling may hurt their sales.

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"As in so many other areas, technology has evolved faster than the law and left us with at times freakish, unfair results", she said.

Somewhere along the line, Amazon got so big that it now has what could be called a "physical presence" (in the form of fulfillment centers) in almost every state, and so it made a decision to start charging sales tax in every state that levied one.

But the move could impact thousands of smaller retailers in MA and across the country as they try to comply with a labyrinth of differing state and local rules. South Dakota's governor has said his state loses out on an estimated $50 million a year in sales tax that doesn't get collected by out-of-state sellers. The Supreme Court sided with South Dakota 5-4, overturning a previous ruling, Quill Corporation v. The estimate represented between 2 and 4 percent of total state and local sales tax collections in 2016, the analysts said. North Dakota from 1992, which set the property or employees standard for sales taxes using the Court's (debated) dormant commerce clause power to restrict state taxation of interstate commerce.

Justice Anthony Kennedy wrote that the rule "each year. becomes further removed from economic reality and results in significant revenue losses to the states".

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