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Carbondale Reporter

Sunday, December 22, 2024

TOUCH OF NATURE ENVIRONMENTAL CENTER: How will Illinois benefit from SCOTUS online sales tax ruling?

Taxes

Touch of Nature Environmental Center recently issued the following announcement.

Shopping online will soon cost you more money.

The U.S. Supreme Court ruled Thursday that states have more rights to charge sales tax on online purchases.

Illinois already requires you to pay sales tax for purchases online, but only when you file your tax returns.

"It's kind of an honor system as I understand it and most people don't pay it," said John Jackson with the Paul Simon Public Policy Institute.,

Jackson said the Supreme Court's ruling is a big win for Illinois.

"It, for the first time, allows states to more effectively collect sales tax on goods that are mailed in from outside from big distributors, big national distributors," Jackson said.

Previous Supreme Court rulings said businesses had to have a physical presence in the state.

The majority Thursday said those rulings are outdated in the internet age.

Several states, including Illinois, lobbied for the ruling, as well as brick-and-mortar retailers like Walmart and Target that have a physical presence in every state.

Illinois lawmakers already included language in the budget bill to start collecting sales tax and Illinois Department of Revenue officials expect that to generate $200 million.

Jackson said there could be more money on the horizon.

"As soon as they get it implemented, there will be some revenue and it'll be substantial and of course, the point is it's a growing part of our economy," Jackson said.

And Jackson said the federal government will likely set the framework for collecting sales tax online, just so it's consistent.

Original source can be found here.

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