Illinois consumers can expect to pay more when shopping online after the U.S. Supreme Court ruled that states have the authority to require out-of-state online retailers to collect sales taxes.
In a 5-4 decision in South Dakota vs. Wayfair Inc., the court ruled states can require sellers to collect sales taxes even when the seller has no physical presence in the state. The court sided with the government.
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SPRINGFIELD — Illinois consumers can expect to pay more when shopping online after the U.S. Supreme Court ruled that states have the authority to require out-of-state online retailers to collect sales taxes.
In a 5-4 decision in South Dakota vs. Wayfair Inc., the court ruled states can require sellers to collect sales taxes even when the seller has no physical presence in the state. The court sided with the government. Concurring with the majority opinion, new Justice Neil Gorsuch wrote that the ruling is meant to “rightly end the paradox of condemning interstate discrimination in the national economy while promoting it ourselves.”
Chief Justice John Roberts dissented.
“Any alteration to those rules with the potential to disrupt the development of such a critical segment of the economy should be undertaken by Congress,” he wrote.
Illinois already requires consumers to self-report sales taxes for online sales. The ruling shifts that burden to sellers.
Michael Leonard, a tax professional based in Oak Park said he knows of virtually no one who self reports online purchases on tax filings. He said the ruling could put small businesses that sell online in a bind.