The U.S. Supreme Court ruled on Thursday, June 21 that states can impose their sales taxes on some online purchases. Illinois already collects sales taxes on many internet purchases and Illinois residents are already obligated to pay a Use Tax on out-of-state purchases.This decision will allow states the ability to enforce Use Tax laws that are already in existence. The state sales tax can be applied to out of state vendors who sell more than $100,000 a year on the internet or make more than 200 transactions in a year. The collections will start Oct. 1.
In a 5-4 decision, the Supreme Court basically overturned a previous ruling that states can only impose a sales tax on internet sales when a company has a physical presence in the state, meaning a structure. In its decision, the court said that previous ruling was flawed and that it put brick-and-mortar stores at a competitive disadvantage. It also acknowledged that internet shopping has changed dramatically since the previous ruling.
Please make sure to check with your accountant to see if / how your business may be affected.