Jun 23, 2018
Online Sales Tax Ruling: What People Are Saying

The monumental ruling on June 21 by the U.S. Supreme Court in the case of South Dakota v. Wayfair will have lasting effects on e-commerce going forward.

The ruling, a narrow 5-4 decision, effectively makes online retailers subject to the same sales tax laws as brick-and-mortar retailers.

It’s important to know that the lawsuit the Supreme Court ruled on only called for sales tax remittance from businesses with more than $100,000 in annual sales or 200 transactions in South Dakota. U.S. solicitor general Paul Clement told USA Today, “States would be well advised not to try to go further than South Dakota did. If a state deviates from that model, they’ll be asking for trouble.”

Overall, most reactions from around the country cited a leveling of the playing field, although there is concern over the effect the ruling will having on small- and medium-sized businesses that rely heavily on internet sales.

Here’s a collection of reactions from various reports.

  • “Retailers have been waiting for this day for more than two decades. The retail industry is changing, and the Supreme Court has acted correctly in recognizing that it’s time for outdated sales tax policies to change as well. This ruling clears the way for a fair and level playing field where all retailers compete under the same sales tax rules whether they sell merchandise online, in-store or both.” — National Retail Federation President and CEO Matthew Shay
  • “One vitalizing effect of the Internet has been connecting small, even ‘micro’ businesses to potential buyers. People starting a business selling their embroidered pillowcases or carved decoys can offer their wares throughout the country — but probably not if they have to figure out the tax due on every sale.” — Etsy CEO Josh Silverman
  • “Amazon should be helped because it is collecting sales tax in every state, while it is the Wayfairs of the world who are directly hurt.” — John Swain, a law professor, University of Arizona
  • “This is a victory for common sense and the economic realities of this century. The previous law rewarded what was really a form of tax evasion that accelerated the demise of Main Street and all brick-and-mortar retailers.” — Jerry Storch, former CEO, Toys R Us and Hudson’s Bay and former vice chairman of Target
  • “Here’s a perfect time for Congress to save the business community from the big, bad taxing authorities. They can look like the good guy, rather than the bad guy, which has a certain political appeal to it.” — Bruce Ely, tax attorney, Bradley Arant Boult Cummings LLP
  • “Big Supreme Court win on internet sales tax — about time! Big victory for fairness and for our country. Great victory for consumers and retailers.” — President Donald Trump via Twitter

News outlets around the country offered opinions through editorials.