June 27, 2018

Consumer Reports: Sales Tax Ruling May Have Limited Impact

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Most states currently have some kind of sales tax, though the amount—and what items or services are taxed—varies widely from state to state. Some experts think states will need to pass additional legislation to collect more tax on online purchases, which could take some time.

“The Court’s decision provides no hard-and-fast rules for states to follow,” says Carl Davis, research director at the Institute on Taxation and Economic Policy, in Washington, D.C. “The process of enacting state laws could take years.”

Another reason behind the limited impact is that some smaller companies have been charging sales tax in recent years, even though they weren’t required to. Read more