Augusto Beato, CEO of Portland SEO, hailed the Supreme Court decision allowing sales tax from out-of-state online retailers as a step forward in the fair administration of our tax system.”
"It’s about time that the states give local merchants a level playing field against big online businesses by requiring them to charge a state sales tax," said Beato. “With more and more shopping being done online, this change will make sure both hometown businesses and out-of-state online retailers are treated equally.”
Merchants that need advice on how to conduct online operations may seek the assistance of Portland SEO by reaching out to Beato through his Twitter account.
Huge online operations have crippled traditional businesses, in part because it has not had to charge a sales tax, thus lowering its prices.
In June, the U.S. Supreme Court allowed the collections of sales tax from out-of-state retailers exceeding $100,000 in sales or 200 or more transactions in Michigan within the previous calendar year.
The court’s ruling overturned a 1992 decision South Dakota v. Wayfair that prevented states from collecting a sales tax on mail or online purchases unless the retailer had a physical presence in the state, and effectively affirmed the constitutionality of state laws that would mandate the collection of the tax. South Dakota had argued that billions of dollars were lost annually because retailers in other states were not adding state sales tax to online purchases.
Adding a state sales tax to online purchases could, however, make at least some online shoppers think twice about buying on their computers or phones, and instead move them to buy from local establishments.
"Let’s give residents a reason to support small businesses and shop locally by requiring online merchants to collect sales tax," Beato added.
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