Supreme Court ruling allows states to collect sales taxes on online purchases
Posted on 6/22/2018 11:34:00 AM.

The U.S. Supreme Court has ruled that states will now be able to collect sales taxes from online sales. The ruling gives states the authority to receive sales tax revenues on purchases made by consumers with a business that has no physical presence in that state.

However, Tax Foundation spokesperson John Buhl says Louisiana’s sales tax laws are too complex for them to take advantage of this ruling.

“Unless they undertake some serious implementations, we don’t anticipate that they would be a state poised to receive any of this revenue any time soon.”

Buhl says other states will struggle as well to reform tax laws.

“Modernizing the sales tax and making it simpler is something that is very difficult and can take years, so Louisiana in that respect is not alone at all.”

Even if Louisiana lines itself up to collect, creating logistics will not be a quick task.

“Expect that it is going take at least a couple months to get online and sort everything out. So states need to be patient about when they are going to see the revenue and when it’s going to start to ramp up.”

U.S. Supreme Court, Sales taxes, John Buhl, Tax Foundation



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