A LITTLE MORE THAN A YEAR AGO, the Supreme Court, in the closely divided South Dakota v. Wayfair decision, ruled states can require most online retailers and many other sellers to collect sales tax, upending more than two decades of legal precedent. The decision affects businesses such as software vendors, equipment retailers, information sellers and any other business selling goods or services subject to sales tax. In other words, it reaches just about everyone. Whether you own a business or are a consumer, it impacts you in some manner. You may pay more now for the item purchased or, as a business owner, you are saddled with much more compliance work, needing to file various tax returns in additional states.
The 5–4 vote overturned the 1992 Supreme Court ruling in Quill Corporation v. North Dakota and eliminated the requirement that businesses be physically present in a state before their sales can be taxed, granting states the ability to collect taxes from out-of-state internet retailers. In 1992 Amazon founder Jeff Bezos was still working on Wall Street. In that year mail order sales totaled $180 million, quite a bit less than the $453 billion estimated in 2017 e-commerce retail sales. Citing reports Amazon surpassed Wal-Mart as the nation’s leading retailer, the court stated that when it decided Quill, “the court could not have envisioned a world in which the world’s largest retailer would be a remote seller.”
The case centered around a South Dakota law which requires remote sellers with more than 200 annual transactions or $100,000 in sales in South Dakota to collect the state’s sales tax. The court felt the law did not pose an undue burden on interstate commerce because it has a concise revenue or transaction threshold, is not retroactive, and the state has a simplified tax system.
One year later there is still confusion, and states and even cities are passing rules on the subject. Business owners should speak with their advisors and confirm they are collecting the required taxes and filing the correct tax returns. As a business grows or increases transactions in a certain city or state, it may exceed a threshold that will mandate it to file, collect or pay taxes.
As it was only decided by one vote, it seems this decision wasn’t an easy one and people can interpret it differently. Things may change again in the future, so stay tuned. Tax authorities are always looking to increase their tax base, and they have ways of finding those not in compliance. It is in your best interest to follow the law, even if it is frustrating and costly.
The content of this article is for informational purposes only. It is not intended to be a substitute for professional financial advice. Always seek the expertise of a certified financial advisor or other qualified provider with any questions you may have regarding personal finance, investment and money-related issues
The Hamilton Hotel, located steps from the White House, was the perfect place for a relaxing weekend getaway. Upon arrival, the staff was extremely friendly and helpful with a quick check-in process. The lobby was immaculate with shining marble flooring, velvet couches and an arched ceiling design that brought a sense of sophistication. For added security, the elevators are only accessible to those who have a key card to a guestroom.
Luxury destinations around the country partnered with Bryte to introduce The Restorative Bed and enhanced sleep programming at their hotels. The revolutionary, AI-powered Restorative Bed uses real-time technology to intuitively adjust based on the individual’s needs and preferences. An embedded sensory network detects biometrics, like heart rate and breathing patterns, when a sleeper enters the first stage of sleep, triggering cooling features and lulling sleepers into deep sleep. Computer-controlled air cushions alleviate pressure points, and the technology also leads sleepers naturally out of sleep.
Tauck announced plans to fully restart its U.S. tours by July 1. Departures of the Southern Charms: Savannah, Hilton Head and Charleston tour have already begun, with other popular tours across the country relaunching in the coming months. Check the Open for Travel page for information on specific tour departures.
Turkish Airlines resumed its premium onboard dining and hot meal service on all business- and economy-class flights longer than two hours and 15 minutes. The resumption of service is in accordance with all health and hygiene applications.
Denver’s The Source Hotel offers its new Passport Program. Overnight guests receive The Source Passport at check-in and from there can enjoy restaurants and retail establishments across The Source Hotel + Market Hall with exclusive discounts. Exclusive discounts are available at The Woods, Safta, Reunion Bread, Beet & Yarrow, Melted and more.
With the vaccine rolling out and U.S. air travel expected to pick up in the upcoming months, the personal finance website WalletHub released a report on 2021’s Best Frequent-Flyer Programs, to help travelers make the best decision for their wallets.
TAP Air Portugal now offers all passengers COVID-19 testing service at Lisbon Airport at a discount. Depending on a destination’s various restrictions, the Rapid Antigen Test is €21; the PCR test is €85; and a PCR Test plus Rapid Antigen Test is €106. TAP customers enjoy priority access to this service.