States' authority to collect sales online impacts retailers

The Supreme Court ruled on Thursday for states to have the authority to collect a sales tax from online retailers....

Posted: Jun 24, 2018 3:25 PM
Updated: Jun 24, 2018 3:25 PM

The Supreme Court ruled on Thursday for states to have the authority to collect a sales tax from online retailers.

Channel 3 spoke with retailers who say the change will have an impact on small business.

Middletown clothing and accessories boutique 'Cinder and Salt' opened three years ago on Main Street.

"Our name is inspired by the residue for a weekend well spent," said 'Cinder and Salt' owner, Rachel DeCabage.

"The smell of campfire on our clothes and salt water on our skin."

DaCabage said in the shops' first year, most of its sales were online. With experience in store and online, DeCabage said she supports the most recent Supreme Court decision.

"I think shopping local is really important. Not just for our local economy, but it's good for the planet. It's good for the people. It's great to get out and experience your communities so hopefully it'll have good residual effects," said DeCabage.

In a 5-4 decision, states can now collect sales tax from online retailers if the transactions happen in the state of purchase.

University of Hartford Professor Patricia Jaeger told Channel 3 that the states have missed out on as much as $30 billion in sales tax revenue each year.

"It should help the states. Most of the states are in a budget crunch. We know in Connecticut we've had budget problems so they should help that," said Jaeger.

Under the old rules, if a customer bought an item online and didn't pay a sales tax, it becomes necessary to report it on an income tax return and pay the State of Connecticut.

"The problem is nationwide the rate of people doing that is only about 4 percent," added Jaeger.

Retail giants like WalMart, Target, and online giant Amazon have sales tax on their products already.

Jaeger said it is small, online businesses with a presence on eBay or Etsy that will have to adjust.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 307519

Reported Deaths: 7096
CountyCasesDeaths
DeSoto20772248
Hinds19888408
Harrison17489302
Rankin13311275
Jackson13097243
Madison9895210
Lee9856169
Jones8290160
Forrest7523146
Lauderdale7187237
Lowndes6262144
Lamar610584
Lafayette6027117
Washington5280132
Bolivar4769129
Oktibbeha455297
Panola4442103
Pearl River4419139
Warren4280118
Marshall4273100
Pontotoc416472
Monroe4057132
Union403675
Neshoba3987176
Lincoln3869108
Hancock372085
Leflore3468124
Sunflower329389
Tate322681
Pike3180104
Scott310572
Yazoo304368
Alcorn297764
Itawamba296776
Copiah292965
Coahoma289677
Simpson287484
Tippah284668
Prentiss275659
Marion265779
Wayne261341
Leake261073
Grenada254982
Covington254580
Adams245882
Newton244859
George237847
Winston225981
Tishomingo222067
Jasper219748
Attala213273
Chickasaw204857
Holmes186471
Clay182454
Stone179131
Clarke176876
Tallahatchie175240
Calhoun163230
Yalobusha158836
Smith158534
Walthall130543
Greene129433
Lawrence126223
Noxubee125933
Montgomery125542
Perry125138
Carroll120826
Amite120041
Webster113432
Jefferson Davis105432
Tunica102525
Claiborne101330
Benton97225
Kemper95226
Humphreys94332
Franklin81823
Quitman78916
Choctaw72817
Jefferson64828
Wilkinson64727
Sharkey49617
Issaquena1686
Unassigned00

Alabama Coronavirus Cases

Cases: 518899

Reported Deaths: 10712
CountyCasesDeaths
Jefferson753641487
Mobile37763798
Madison33859494
Tuscaloosa25266443
Montgomery23962565
Shelby23106238
Baldwin20631300
Lee15524165
Calhoun14284311
Morgan14139268
Etowah13662345
Marshall11957219
Houston10380278
Elmore9993200
Limestone9811147
Cullman9470188
St. Clair9426234
Lauderdale9215227
DeKalb8746181
Talladega8058171
Walker7087275
Jackson6754110
Autauga6723103
Blount6483135
Colbert6203130
Coffee5399112
Dale4767110
Russell428838
Franklin419982
Chilton4083109
Covington4053114
Tallapoosa3893146
Escambia387674
Dallas3527149
Chambers3499122
Clarke346360
Marion3065100
Pike305875
Lawrence295395
Winston272372
Bibb256258
Marengo248661
Geneva245875
Pickens232959
Barbour224755
Hale218775
Butler212266
Fayette208960
Henry187844
Cherokee182044
Randolph176941
Monroe171440
Washington164038
Macon154548
Clay149354
Crenshaw149257
Cleburne146041
Lamar139234
Lowndes136453
Wilcox124327
Bullock121340
Conecuh109028
Perry107926
Sumter102932
Coosa99228
Greene90734
Choctaw58724
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