For quite some time, brick and mortar stores have been perplexed by why online retailers haven’t had to pay sales tax in the state to which the buyer resides and receives their product. According to ND state government, we are losing 20 million plus in tax dollars from not collecting these funds.
Mike Rud is with the North Dakota Retailer’s Association and shares his thoughts on this historic ruling that will finally level the playing field that in state physical shopping sites have been fighting against online retailers.
This is not new news, the Quill Corp. vs State of North Dakota is where the argument really grabbed footing. Heidi Heitkamp, the State Tax Commissioner at the time, took the argument about retailers outside the state should be paying in state tax. In recent months, Wayfair, Inc vs Sate of South Dakota has also brought attention to the issue.
Letters are arriving to online retailers large and small with details about the new tax system. Only time will tell how the policing of these new policies will take place and whether or not online shops call it quits or conform to the new tax codes.
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(Amy Iler & JJ Gordon are talk-show hosts at 790 AM KFGO in Fargo-Moorhead. “It Takes 2 with Amy & JJ” can be heard weekdays 11am-2pm. Follow Amy on Twitter @AmyKFGO. Follow JJ on Twitter @JJGodon701.)
