How do Sellers and Consumers Think about United States Sales Tax!
The Supreme Court of the United States has agreed on accept the South Dakota's lawsuits over Wayfair, Overstock.com and New Egg Network January 13.
The reason why the Supreme Court of South Dakota appealed to the Supreme Court of the United States was that South Dakota legislators passed a law in 2016 that stipulates that eCommerce companies with annual sales of more than $ 100,000 or trades of more than 200 will need to collect sales tax (4.5%) from constomers for the state government. The bill denied the 1992 decision of the United States Supreme Court in Querrey's case against North Dakota, the state government can not require online retailers in the state without physical retail stores to levy sales tax on consumers. The South Dakota government has asked the High Court to accept the case in order to get its act approved by the Constitution.
If the US Supreme Court overturns existing laws, state and local governments will be able to charge sales tax from all online retailers, even though these retailers have no physical stores in the state, which could have a profound impact on all retail electricity providers. Currently, only retailers with physical stores charge sales tax for their state government. Most states charge 3% sales tax.
The case is expected to be adjudicated by the end of June 2018, and Internet Retailer interviewed some retailers and consumers in this case to understand their views on the case, after all, the outcome of the Supreme Court's decision will have a direct impact on their interests:
Most (72%) interviewed retailers are unwilling to change the law, and they think retailers without physical stores should not be required to be charged sales tax. In addition, 17% said they expect the law to change and 11% said they do not know.
Sixty-nine percent of surveyed retailers said they will be seriously negatively affected once the U.S. Supreme Court has lodged an appeal with South Dakota to overturn existing laws. 17% of respondents said they would have a slight impact, 8% said that they had no impact, and 6% thought it would have a slight positive impact and a significant boost.
In response, Atinc Sonmezer, chief executive of MissBellyDance.com, said: "Once the law changed, we had to declare sales tax to nearly 14,000 counties a month, which means a lot of cost. I do not know how many small sellers on Amazon can Bear the changes. "
Rogers Williams, owner of LotionsByDesign.com, said:" We are likely to be forced to use third-party tax services to collect tax, which involves a cost. Moreover, the implementation of such tax obligations means that some degree of information exchange, which we can not provide …. "
Deb Beresford, E-commerce manager at X-Wear.com and AmericanSunglass.com, said:" In the past two years, many of the sunglasses we've sold have changed the policy, requiring retailers to sell at a minimum ads proce (MAP) does not allow us to offer a substantial discount to consumers, leaving us with a huge competitive advantage over the platform and losing a lot of revenue. We still receive the favor of customers in other states, because the purchase of our sunglasses do not need to pay sales tax, and now the court seems to be deprived of our last chance. "
How do consumers think about this incident?
Sixty-one percent of consumers said they did not actively look for retailers to buy goods without a sales tax and 39% said they would specifically look for such retailers in order to save money.
When consumers are asked, "Once the law requires retailers to charge you for sales tax on every purchase order, do you still shop online as often?" Thirty-six percent of consumers think they will reduce the frequency of online purchases, but Most (55%) of consumers said it did not affect their online shopping frequency, while another 8% of consumers even said they would be more frequent online shopping.