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

[BobC]

Originally Posted by Exhibitman

I am sure all of this is going to be addressed in legislation in Congress.

But seriously, I think this will open the door to serious consideration of a Federal sales tax and the creation of a Federal-state partnership on sales taxes for interstate sales. Congress certainly could enact a uniform set of sales tax provisions and rules for interstate commerce, which would ideally allow a retailer in one state to enter all data for all interstate sales into a single Federal sales tax return and leave it to the agency administering the program to apportion the money and distribute it to all of the states.

I would also guess that most states are going to address this case in the next legislative session. Until the state laws are changed, there is nothing to do, really. The ruling just opens the door to future changes in the tax programs.

Oh, that has been talked about for a while but, the problem as pointed out before, all the different state rules, taxes and rates in effect. Normally when you get the feds involved they try/want to set it up as one set of rules for all, to make it more simple and easier to handle. Also, what do you do for those states that don't have a sales tax?

Trust me, while it sounds like a good idea at first, many states will end up fighting this tooth and nail. A good example would be if you look at Ohio, which has virtually every city and village in the state with their own city income tax. The state has been trying to take that over and regulate and collect it on behalf of the cities for quite a few years now. The cities have been fighting it all along as they figure once the state handles it, they are now at their mercy. Same thing will hold true with the states allowing the feds to handle and collect this for them. They don't trust the feds at all either, and rightly so. Just like the cities in Ohio know not to trust the state.