Tuesday, April 17, 2018

Clicking 'checkout' could cost more after Supreme Court case

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.

Supreme Court rejects anti-abortion pastor's appeal on noise

The Supreme Court won't hear an appeal from a pastor who challenged a state law's noise limit that was used to restrict his anti-abortion protest outside a Planned Parenthood clinic in Portland, Maine. The justices offered no comment Monday in rejecting the appeal from the Rev. Andrew March. He sued after he said Portland police officers repeatedly told him to lower his voice while he was protesting outside the clinic. March says police invoked a part of the Maine Civil Rights Act that applies to noise outside health facilities. March says the law "targets pro-life advocates" in violation of the Constitution. A district judge temporarily blocked its enforcement, but the federal appeals court in Boston reversed that ruling.

Supreme Court hearing case about online sales tax collection

The Supreme Court is hearing arguments about whether a rule it announced decades ago in a case involving a catalog retailer should still apply in the age of the internet. The case on Tuesday focuses on businesses' collection of sales tax on online purchases. Right now, under the decades-old Supreme Court rule, if a business is shipping a product 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. Customers are generally supposed to pay the tax to the state themselves, but the vast majority don't. States say that as a result of the rule and the growth of internet shopping, they're losing billions of dollars in tax revenue every year. More than 40 states are asking the Supreme Court to abandon the rule. Large retailers such as Apple, Macy's, Target and Walmart, which have brick-and-mortar stores nationwide, generally collect sales tax from their customers who buy online. But other online sellers that only have a physical presence in a few states can sidestep charging customers sales tax when they're shipping to addresses outside those states. Sellers who defend the current rule say collecting sales tax nationwide is complex and costly, especially for small sellers. That complexity was a concern for the Supreme Court when it announced the physical presence rule in a case involving a catalog retailer in 1967, a rule it reaffirmed in 1992. But states say software has now made collecting sales tax easy. The case the court is hearing has to do with a law passed by South Dakota in 2016, a law designed to challenge the Supreme Court's physical presence rule. The law requires out-of-state sellers who do more than $100,000 of business in the state or more than 200 transactions annually with state residents to collect and turn over sales tax to the state. The state wanted out-of-state retailers to begin collecting the tax and sued Overstock.com, home goods company Wayfair and electronics retailer Newegg. The state has conceded in court, however, that it can only win by persuading the Supreme Court to do away with its current physical presence rule.