Email a copy of 'The Growing List of States with Online Sales Tax Laws' to a friend
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Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.
Sellers need to unite, picket, and get this supreme court decision repealed. It is asinine to force online sellers to pay other states taxes.
If someone in ohio goes to texas, that texas store doesn’t have to pay ohio taxes for that person.
This will eventually destroy all small business, as the tax laws will sooner or later target small and medium sellers directly.
FIGHT, RESIST.
A threshold of 200 retail sales should protect most small sellers from South Dakota but it is unlikely to exclude small sellers from California and other populous states. A seller of $10 items grossing $20,000 per year could easily cross the threshold if 10% of retail sales are to California buyers. The Wayfair threshold is unfair for populated states.
California population is almost 40 million while South Dakota is about 877,000, less than one million. The California to South Dakota population ratio is 45 to 1. If the Wayfair criteria had been weighted by population, the retail sales threshold would be 9,000, not 200. The hypothetical seller of $10 items would have to gross $90,000 in California instead of $2,000 to meet the criteria.
Unfortunately, lawyers do not seem to be required to understand arithmetic or simple logic.