“Ever bought a backpack or TV on Amazon and didn’t have to pay the taxes on it? Unfortunately, that benefit is ending.
But don’t worry, your love affair with online shopping is strong enough to survive the threat of higher prices and more taxes.
Following a major Supreme Court decision Thursday, states can now require online and out-of-state retailers to collect sales taxes on their behalf. Previously, shoppers were responsible for sending tax payments for their online purchases, but few ever did. The ruling, which overturns 50 years of past tax practices, will likely force millions of Americans to start paying taxes on much more of their online spending.
Tax and e-commerce experts say this change will cause plenty of headaches for small online retailers that will now need to wade through complex and varied state tax regimes. They say it will also costs consumers more money, both in taxes they weren’t paying before and higher prices for online goods, as retailers bake in the cost of complying with the new requirements.”