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June 22, 2018

States can now force you to pay online sales tax

by John_A

In other words, you might have to start paying tax on B&H orders.

On Thursday, June 21, the Supreme Court voted in favor (5-4) of allowing states to require online buyers pay sales tax no matter what site they’re shopping at.

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In 1992, it was ruled that consumers didn’t have to pay sales tax on an item if it was being shipped from a store that didn’t have a physical presence in the state of the buyer. However, following this recent decision from the Supreme Court, that’s no longer the case.

According to The Hill —

Delivering the opinion of the court, Justice Anthony Kennedy said the physical presence rule in that former case, known as Quill Corp. v. North Dakota, is unsound and incorrect.

For readers of our site, one of the biggest implications this ruling will have is on B&H. B&H doesn’t require that buyers pay sales tax if they place orders outside of New York or New Jersey, and while you’re supposed to later pay those uncollected funds when tax time comes around, the vast majority of people don’t.

From here on out, states can now force shoppers to pay the sales tax upfront no matter where you’re buying from.

Do you agree or disagree with how the Supreme Court ruled in this case?

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