SCOTUS

Another wave of states is expected to begin implementation Jan. 1, according to the National Conference of State Legislatures.

As the nation’s most populous state with the largest economy, California could set the upper level benchmark for other large states such as Florida and New York that have not yet announced a sales tax remittance threshold.

Only a few of the 45 states that levy sales taxes have announced plans to begin implementation before the end of this year.

House Judiciary Chairman Bob Goodlatte, R-Va., blasted the Supreme Court’s 5-4 decision in South Dakota v. Wayfair, Inc. as having “the potential to unleash chaos for consumers and remote sellers, particularly small business sellers.”

Tuesday’s House hearing will be chaired by Rep. Bob Goodlatte, R-Va., who was a steadfast supporter of the previous standard under which a remote seller had to have a physical presence in a state in order to be required to collect sales taxes.

State and local governments were advised Thursday to avoid imposing burdens on out-of-state e-commerce retailers that could spark a new round of litigation as they begin implementing the Supreme Court’s June 21 South Dakota v. Wayfair, Inc. ruling on sales taxes.

During a webinar Thursday moderated by the National League of Cities, officials pointed out that the South Dakota v. Wayfair, Inc. sales tax case has been remanded by the U.S. Supreme Court back to the South Dakota Supreme Court.

The U.S. Supreme Court case heightens the risks for Georgia, because authorities could be forced to borrow to build alternate water systems.

Congress might provide clarity by preventing states any state from imposing retroactive liability.

Membership in the Streamlined Sales Tax Governing Board is voluntary, but the Supreme Court ruling may serve as an impetus for more states and e-commerce retailers to join.

Sen. Jon Tester, D-Mont., and co-sponsors of a recently offered bill want to prevent businesses in their states from being forced to collect sales taxes from e-commerce transactions.

The ruling may trigger the renegotiation of almost all public sector contracts, though severability clauses prevent immediate wage and benefit reductions.

The opinion said Florida met its initial burden in proving that a cap on Georgia’s water withdrawals could be considered further.

The decision could ultimately free up more spending flexibility for state and local governments by weakening organized labor in the sector of the economy where the rate of unionization is the highest.

Thursday's 5-4 ruling involves a 2016 law enacted by South Dakota requiring out-of-state e-commerce retailers to collect sales tax if they have more than 200 transactions annually or $100,000 in sales within the state.

States could gain $8 billion to $33.9 billion in additional annual revenue if the high court rules in favor of South Dakota, while a loss would mean the status quo.

Tax administrators will consult with governors and governors, in turn, will consult with their legislatures before responding to any of several possible rulings in the case by the high court, officials said.

Any change to the spending flexibility among governmental units that results from the court decision is likely to be incremental, according to Fitch.

New Jersey, Pennsylvania, and other states are hoping to capitalize on gaming legalized by the Supreme Court's decision on Monday.

Many lawmakers in Congress have deferred to the high court on the issue in the belief that helping state and local governments collect sales tax for e-commerce might be construed as a new tax rather than an enforcement measure.