Town halls and legislatures are celebrating the U.S. Supreme Court’s decision to allow governments to require out-of-state online retailers and remote sellers to collect sales tax from their customers.
Effectively, billions in previously uncollected sales tax dollars will begin flowing into state and local budgets, but not everyone will be too pleased with the High Court’s ruling in South Dakota v. Wayfair Inc.
So who is popping champagne corks?
1. Old-School Brick and Mortar Shops
Up and down Main Street, mom and pop retailers are smiling a little broader. The SCOTUS decision theoretically levels the playing field for all retailers, especially locals with no internet presence who’ve watched their business fall. Their sales may go up if they see less “show-rooming,” where shoppers walk in to touch and feel a product only to leave and buy it online. (Caveat: Shoppers may still opt for convenience and selection over price, as Amazon had already been collecting sales tax.)
2. Green Eyeshade Brigade (CPAs & Tax Professionals)