Small companies may have to charge sales tax
WASHINGTON (AP) – Thousands of small companies may have to start charging sales tax to their out-of-state customers after a Supreme Court ruling that states can force online shoppers to pay it.
It can also be a logistical headache, with an estimated 10,000 different tax jurisdictions. Small online retailers have several software options available to calculate and collect sales tax and submit it to state and local tax authorities, but it can be an added cost.
Dave “Lando” Landis says he’ll do what needs to be done. The owner of Rocker Rags, a New Mexico-based online seller of clothing with photos and logos of rock musicians. He says he’ll take care of it but it’s not a panic situation.
Some small retailers have worried that having to charge sales tax could drive away customers, or give an advantage to businesses in the five states that don’t have a state sales tax.