Online Retailers Can Now Collect Sales Tax

The U.S. Supreme Court ruled recently that states can now force online retailers to collect sales tax, even if that retailer lacks a physical presence in the state in which the sale originates. The ruling addresses the vexation of brick-and-mortar retailers who always charge sales tax due to their physical grounding, as well as governments that complained they were missing out on billions in potential revenue. South Dakota will be the first state to begin collecting sales tax on online sales, with a number of others expected to follow suit. "It is imperative that retailers consult with their business accountant as soon as possible to make the necessary software adjustments," says John McNamara, NSSF Senior Director, Retailer Services.