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

[markf31]

Originally Posted by glchen

I think it will be based upon the buyer's ship to zip code, and not the seller's zip code. Therefore, unless ebay changes their software to automatically collect the tax for all sellers, each seller may have to collect tax for all of their buyers and then send these taxes that they collected to all 50 states (or those that have a sales tax), which would be a huge pain. Right now, I only collect tax for buyers in California, and I have to complete a form every year for that. If I have to do that for all 50 states, it would be a tremendous overhead.

I believe you are correct, that the tax would be based on the buyer's ship to zip code.

This case originated out of South Dakota, which enacted a law that required all merchants to collect a 4.5 percent sales tax if they had more than $100,000 in annual sales or more than 200 individual transactions in the state. State officials sued three large online retailers — Wayfair, Overstock.com and Newegg — for violating the law. Those lawsuits led to this decision today.

I would hope that states, as they move forward with this new taxing power, would institute similar statues in regards to which merchants they would require to collect sales tax.... ie annual sales over X number of dollars or Y number of transactions.