...
South Dakota wanted out-of-state retailers to begin collecting the tax and sued several of them: Overstock.com, electronics retailer Newegg and home goods company Wayfair. The state conceded in court, however, that it could only win by persuading the Supreme Court to do away with its physical presence rule. After the decision was announced, shares in Wayfair and Overstock both fell, with Wayfair down more than 3 percent and Overstock down more than 2 percent.
The Trump administration had urged the justices to side with South Dakota.
The case is South Dakota v. Wayfair, 17-494."
https://apnews.com/332abb7455cb4b60b2effc0852ff3c89/High-Court:-Online-shoppers-can-be-forced-to-pay-sales-tax
This is really a state issue. If your state decides to charge you sales tax for a purchase made online...or in a brick n mortar location...your fight will be at the state level.
This is and should be a states issue, however, it makes very little sense.
What is the difference between 1) me buying something online from a seller out of state and having it shipped to me, and 2) me driving out of state and purchasing the item and bringing it back in?
Flip side, if I own a business and sell online, why should I collect taxes for another state, and how would that other state enforce me (out of its jurisdiction) to collect those taxes? I didn’t go to do business in the other state. The customer came to my state and sought my business out. Seems like if anything, it should be treated like the online user physically visited my store and he just has to pay my states sales tax.
Any attorneys here that can explain what the enforcement looks like to force tax collection in another state? Are they going to bar my online store from being seen in the buyers state?
This seems very confusing.