Sales tax: Supreme Court to decide in June

As an online business, we face increasing challenges from local and States who want us to collect and remit sales tax.  We have no problem charging and collecting sales tax, but the problem is the administrative complications of complying with 12,000+ taxing jurisdictions.  States have unfortunately started targeting small businesses for past tax they think is due, while they have forgiven massive companies like Amazon.  We submitted an amicus curiae brief in the Supreme Court case South Dakota v Wayfair, and will be watching the results due in June.  We expect the Court to uphold their prior decision in Quill, however, the States are increasingly aggressive to small businesses for a relatively small amount of tax.  We believe they should target the massive wealthiest corporations, and instead work with Congress to implement a national system.  This will keep innovation alive; subjecting small businesses to 12,000+ taxing jurisdictions will have unintended consequences, and cause many businesses to shut down due to tax audits from multiple jurisdiction.  Ironic, since our country was founded in a tax revolt, and we are here again:  corporations dictate policy and tax individuals and small businesses, while getting subsidies and tax exemptions.

 

For more information, and interview can be found here on EcommerceBytes

Dan Pitkow