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Question of sales tax on online purchases goes to high court
Court News |
2018/04/12 12:52
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Online shoppers have gotten used to seeing that line on checkout screens before they click "purchase." But a case before the Supreme Court could change that.
At issue is a rule stemming from two, decades-old Supreme Court cases: If a business is shipping to a state where it doesn't have an office, warehouse or other physical presence, it doesn't have to collect the state's sales tax.
That means large retailers such as Apple, Macy's, Target and Walmart, which have brick-and-mortar stores nationwide, generally collect sales tax from customers who buy from them online. But other online sellers, from 1-800 Contacts to home goods site Wayfair, can often sidestep charging the tax.
More than 40 states are asking the Supreme Court to reconsider that rule in a case being argued Tuesday. They say they're losing out on "billions of dollars in tax revenue each year, requiring cuts to critical government programs" and that their losses compound as online shopping grows. But small businesses that sell online say the complexity and expense of collecting taxes nationwide could drive them out of business.
Large retailers want all businesses to "be playing by the same set of rules," said Deborah White, the president of the litigation arm of the Retail Industry Leaders Association, which represents more than 70 of America's largest retailers.
For years, the issue of whether out-of-state sellers should collect sales tax had to do mostly with one company: Amazon.com. The online giant is said to account for more than 40 percent of U.S. online retail sales. But as Amazon has grown, dotting the country with warehouses, it has had to charge sales tax in more and more places.
President Donald Trump has slammed the company, accusing it of paying "little or no taxes" to state and local governments. But since 2017, Amazon has been collecting sales tax in every state that charges it. Third-party sellers that use Amazon to sell products make their own tax collection decisions, however.
The case now before the Supreme Court could affect those third-party Amazon sellers and many other sellers that don't collect taxes in all states — sellers such as jewelry website Blue Nile, pet products site Chewy.com, clothing retailer L.L. Bean, electronics retailer Newegg and internet retailer Overstock.com. Sellers on eBay and Etsy, which provide platforms for smaller sellers, also don't collect sales tax nationwide.
States generally require consumers who weren't charged sales tax on a purchase to pay it themselves, often through self-reporting on their income tax returns. But states have found that only about 1 percent to 2 percent actually pay. |
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Supreme Court again refuses to hear Blagojevich appeal
Legal Line News |
2018/04/11 12:51
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The Supreme Court for the second time has refused to hear an appeal by imprisoned former Illinois Gov. Rod Blagojevich of his corruption convictions.
The justices didn't comment Monday in letting stand the convictions and 14-year prison term the 61-year-old is serving. His scheduled release date is 2024.
Blagojevich's lawyers had wanted the high court to take up his case to make clear what constitutes illegal political fundraising. They argued that politicians are vulnerable to prosecution because the line between what's allowed and what's illegal is blurry.
His convictions included trying to extort a children's hospital for contributions and seeking to trade an appointment to the Senate seat Barack Obama vacated when he was elected president for campaign cash.
The court also refused to hear his 2016 appeal.
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Clicking 'checkout' could cost more after Supreme Court case
Law Firm News |
2018/04/10 12:51
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The Supreme Court is hearing a case this week that could affect how much customers pay for online purchases.
At issue is a rule saying that businesses don't have to collect state sales taxes when those businesses ship to a state where they don't have an office, warehouse or other physical presence.
Large retailers with brick-and-mortar stores have to collect sales taxes nationwide, but smaller online sellers can often avoid doing so.
Large retailers say the rule puts them at a competitive disadvantage. States say they're losing out in billions of dollars in tax revenue.
But small businesses that sell online say the complexity and expense of collecting taxes nationwide could drive them out of business.
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Court clerk: Despite memo, staff not required to campaign
Court News |
2018/04/07 23:13
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The clerk of court in one North Carolina county says she never meant to require any of her employees to work for her re-election even though that's what a leaked memo said.
After the memo was published, Surry County Clerk of Court Teresa O'Dell told the Mount Airy News that she doesn't require staff to work for her campaign. She acknowledged that the memo "seemed to indicate otherwise" and sent a follow-up note.
A memo distributed March 27th said employees would be required to campaign for her, including taking vacation time so they weren't doing political work while on the clock.
She also told staffers that she wouldn't be in the office before the primary.
O'Dell is facing a challenge from Neil Brendle in the May 8 Republican primary. |
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