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

[Rhotchkiss]

Have not read the decision -- when is it effective? I mean, by what date do sellers need to charge/buyers need to pay, sales tax?

[Santo10Fan]

Originally Posted by Rhotchkiss

Have not read the decision -- when is it effective? I mean, by what date do sellers need to charge/buyers need to pay, sales tax?

I assume Supreme Court decisions are effective immediately. South Dakota may be able to retroactively collect from the time the court case began. But if the SC overturns a criminal conviction, that person is freed pronto. If anyone sees sales tax crop up on ebay seller/buyer invoices this week please let me know.

[rats60]

Originally Posted by Santo10Fan

I assume Supreme Court decisions are effective immediately. South Dakota may be able to retroactively collect from the time the court case began. But if the SC overturns a criminal conviction, that person is freed pronto. If anyone sees sales tax crop up on ebay seller/buyer invoices this week please let me know.

The South Dakota law says that they can't collect tax retroactively. The Supreme Court pointed this out in their decision as a point to their law being resonable and not placing an undue burden on retailers.

[markf31]

It is interesting to note, as I just am finding out myself while reading articles on all if this, that several states including my home state of Pennsylvania (also Oklahoma, and Washington at least) have Marketplace Facilitator Laws in place. Pennsylvania's just went into effect April of this year.

The Marketplace Facilitator Law for PA requires facilitator sites such as Etsy, Ebay and Amazon to either collect sales tax on items purchased by PA residents, or in lieu of collecting the tax the facilitator must supply a notice to the purchaser that sales tax was not collected and that a use tax might be due on the sale by the purchaser. If the facilitator elects the 2nd method of notification, the facilitator must submit to the state an annual report by January 31 of each year to the Pennsylvania Department of Revenue that includes the following:

The purchaser’s name, billing address, delivery address and, if different, the purchaser’s last known mailing address.
The total dollar amount of purchases from this marketplace facilitator.
The name and address of the marketplace facilitator that made the sale.

Each failure to comply with the notice and reporting requirements can result in a penalty of $20,000 per violation, per year, or 20 percent of total Pennsylvania sales during the previous 12 months, whichever is less.

Marketplace Facilitators

So Pennsylvania now has a law on the books, but where the state will now know from information provided by Ebay, Etsy, etc.. how much every resident of Pennsylvania paid for items bought through 3rd part facilitators.

[drcy]

What will be interesting is the competitive imbalance and state politics due to differing state sales tax rates. Here in Washington State, there is no state income tax but a high sales tax.

[cardsnstuff]

Originally Posted by markf31

It is interesting to note, as I just am finding out myself while reading articles on all if this, that several states including my home state of Pennsylvania (also Oklahoma, and Washington at least) have Marketplace Facilitator Laws in place. Pennsylvania's just went into effect April of this year.

The Marketplace Facilitator Law for PA requires facilitator sites such as Etsy, Ebay and Amazon to either collect sales tax on items purchased by PA residents, or in lieu of collecting the tax the facilitator must supply a notice to the purchaser that sales tax was not collected and that a use tax might be due on the sale by the purchaser. If the facilitator elects the 2nd method of notification, the facilitator must submit to the state an annual report by January 31 of each year to the Pennsylvania Department of Revenue that includes the following:

The purchaser’s name, billing address, delivery address and, if different, the purchaser’s last known mailing address.
The total dollar amount of purchases from this marketplace facilitator.
The name and address of the marketplace facilitator that made the sale.

Each failure to comply with the notice and reporting requirements can result in a penalty of $20,000 per violation, per year, or 20 percent of total Pennsylvania sales during the previous 12 months, whichever is less.

Marketplace Facilitators

So Pennsylvania now has a law on the books, but where the state will now know from information provided by Ebay, Etsy, etc.. how much every resident of Pennsylvania paid for items bought through 3rd part facilitators.

I'm in PA too; in simple terms, what does this mean for me as an ebay seller?

[BosseFieldBoy]

I’m a very small time seller, so I’m guessing I will be exempt from many states’ sales tax laws. But I’m not really sure what to do at this point. I’m guessing most states have de minimus exemptions, but that’s just an assumption. Does anyone know a quick hit resource of state sales taxes and exemptions?

[Brian Van Horn]

Well, I just got around to scanning through the PDF of the decision and now I am going out to reset my eyeballs to their original positions. My reaction hasn't changed pending loopholes: