A Supreme Court ruling last week says states can make online shoppers pay sales tax.

The 5-4 ruling clears the way for taxation on internet transactions for states, who said they were losing out on billions of dollars annually under two decades-old Supreme Court decisions that impacted online sales tax collection. The cases the court overturned said that if a business was shipping a product to a state where it didn’t have a physical presence such as a warehouse or office, it didn’t have to collect the state’s sales tax. Customers were generally supposed to pay the tax to the state themselves if they don’t get charged it, but the vast majority did not.

St. Joseph Chamber of Commerce President and CEO Patt Lilly said local retailers have had a concern about this issue for several years.

“That has been particularly so in the last five years as the internet marketplace has grown, not only in terms of sales, but also the variety of products that are sold,” Lilly said. “This is something that, as a local chamber, we have fought for to have this opportunity where internet sales are taxed. Some people might say, ‘Well that seems a little odd that the chamber would be for that,’ but that’s because we’re trying to support our local businesses. We have felt it’s important, the state chamber has also been an endorser of sales tax on internet sales.”

Lilly said he thinks many local businesses will be pleased with the Supreme Court’s decision.

“While, I’m sure, all of us as taxpayers that buy things over the internet, have enjoyed in some ways not paying sales tax, the truth is, it’s a very unfair system to your local businesses,” Lilly said. “I think providing that level playing field, if you will, will be very important.”

Lilly said there is still work to be done on the state and local levels to facilitate the flow of sales tax and hopes Missouri will address it soon.

 

– AP and Post Staff –