Under South Dakota's law, online retailers with more than $100,000 in annual sales or more than 200 transactions in the state are required to pay a 4.5 percent sales tax on all purchases.
Most sales taxes are called "sales and use tax", because consumers generally have a legal obligation to report and pay use tax when sales tax isn't collected on a sale.
In a statement by Rauschenberger, there will be criteria businesses have to meet before they are required to collect sales tax for the state.
In the majority decision, Justice Anthony Kennedy noted that the realities of consumer habits have changed drastically since the 1992 decision. Mail-order sales in 1992 were only $180 billion, while online sales previous year topped $450 billion.
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Chief Justice John Roberts offered the dissenting opinion, along with Justices Stephen Breyer, Elena Kagan, and Sonia Sotomayor.
According to the Nevada Department of Taxation, the rule could increase the states sales tax collections by almost $30 million annually.
But Nebraska won't be able to start collecting sales taxes from online retailers until next year at the earliest, after an Internet sales tax bill fell victim to a filibuster this year.
"We are a state, we're most famous for having one of the most complicated and quite frankly, screwed up sales tax systems in the United States", McCarthy said. "The storefront on Main Street is paying property taxes in their local community; they're paying the person that's helping you try on the shoes, and they've got to pay for the inventory", she said, but they lose a lot of sales because people know they can buy the same shoes online without paying taxes".
The typical retailer on eBay sells between $10,000 and $500,000 annually, with customers in more than 300 tax jurisdictions. He said the legislation would be tailored to fit within the Supreme Court ruling. It's particularly expected to help states with no income tax, like Florida, Wyoming, and Washington, since those states rely more heavily on sales taxes. The Supreme Court decision clears the way for states to unwind that competitive advantage.
Only about half of states that levy sales tax are now parties to the SSTA. Then we have a handful of states who don't even charge sales tax at all.
And according to the Supreme Court case, some large online retailers do not collect taxes on their remote sales.