Lump of coal? Taxes more likely for online gifts this season

Civil Rights

where they weren't before. The reason: the Supreme Court.

A June ruling gave states the go-ahead to require more companies to collect sales tax on online purchases. Now, more than two dozen have moved to take advantage of the ruling, many ahead of the busy holiday shopping season.

"Will your shopping bill look any different? ... The answer right now is it depends," said Jason Brewer, a spokesman for the Retail Industry Leaders Association, which represents more than 70 major retailers.

Whether shoppers get charged sales tax on their online purchases comes down to where they live and where they're shopping.

Before the Supreme Court's recent decision , the rule was that businesses selling online had to collect sales tax only in states where they had stores, warehouses or another physical presence. That meant that major retailers such as Apple, Best Buy, Macy's and Target, which have brick-and-mortar stores nationwide, were generally collecting sales tax from online customers. But that wasn't the case for businesses with a big online presence but few physical locations.

Now, states can force out-of-state sellers to collect sales tax if they're doing a fair amount of business in the state. That means retailers such as Overstock.com, home goods company Wayfair and electronics retailer Newegg can be required to collect tax in more states. Those companies were involved in the case before the Supreme Court, but a wide range of businesses from jewelry website Blue Nile to clothing and outdoor company L.L. Bean and electronics retailer B&H Photo-Video are also affected.

Before the Supreme Court's decision, Overstock was collecting sales tax in eight states. Now, it's collecting sales tax nationwide. Jonathan Johnson, a member of Overstock's board of directors, said a small number of customers reached out to ask about the change when it happened but the company now hasn't had a question about it in months. Wayfair, for its part, was collecting sales tax in 25 states before the decision. Now it's collecting sales tax in 36 of the 45 states with a sales tax.

Related listings

  • Mixed rulings for Republicans from Kentucky Supreme Court

    Mixed rulings for Republicans from Kentucky Supreme Court

    Civil Rights 11/14/2018

    In a pair of mixed rulings for Kentucky Republicans, the state Supreme Court on Thursday struck down a law requiring a panel of doctors to review medical malpractice cases before they go to court while upholding the state's law banning mandatory unio...

  • Court fight likely in 10-year-old girl’s homicide case

    Court fight likely in 10-year-old girl’s homicide case

    Civil Rights 11/10/2018

    When a 10-year-old Wisconsin girl was charged with homicide this week in the death of an infant, it was a rare — but not unprecedented — case of adult charges being filed against someone so young.The girl told investigators she panicked a...

  • The Latest: 6 countries seek criminal probe of Venezuela

    The Latest: 6 countries seek criminal probe of Venezuela

    Civil Rights 09/27/2018

    Six countries from the Americas say they are asking the International Criminal Court to investigate Venezuela's government for alleged crimes against humanity. It's the first time that member countries have referred another country to the Netherlands...

New Rochelle, New York Personal Injury Lawyers

If you or a loved one has been injured in an accident, contact Kommer, Bave & Ollman, LLP, in New Rochelle, New York, immediately. We can answer all your questions and work with you to determine if you have the grounds for a personal injury lawsuit. The attorneys at our firm are determined to resolve even the most difficult of cases. We will work closely with you to determine the best course of action to get your claim or case resolved in the most efficient way possible. We will fight for your right to compensation! No one should have to suffer a financial burden from the result of another person’s carelessness. The attorneys at Kommer, Bave & Ollman, LLP will aggressively fight to ensure that justice is served on your behalf.