Supreme Court overturns Quill, subjects all internet transactions to sales tax

[BobC]

Originally Posted by tschock

Sincerely confused by this response. You said THE state. What about other states with different rates? I guess the bottom line is we have to wait and see what the changes will be. Though rather than simplify things, it seems the government tends to generally make things more complicated than need be.

What Adam is likely referring to is that he is currently registered and licensed to collect and remit sales tax in the state in which he and his business reside. So if he had sales to customers in his home state where he is located and has nexus, he properly collects the sales tax and sends it in. Under the prior law, sales to a customer outside of his home state where he does not have nexus and is not required to be licensed and registered for that other states' sales tax, he would not charge and collect sales tax. That would be the responsibility of the buyer to report and pay the use tax to their home state of residence.

That is the problem with this recent ruling. In the future Adam may be forced to start registering and filing sales tax returns in other states merely because he reaches a certain level of business (sales) to customers in those other states. And he would then have to start keeping additional records and such to comply.

If this does go through and leads to the potential impact many fear, I can see that some software company(ies) will take advantage and try to create a program to assist small business owners in filing and complying with the various sales tax laws in all the states they have sales in. At some cost of course. And then market providers like Ebay would become hard pressed to interact with such other software to help their sellers, or have to develop it themselves. Whatever way it would end up going, it is not something Ebay wanted to have to deal with I would guess.