Last month, the U.S. Supreme Court cleared the way for states to enact legislation to force all internet retailers to collect state sales tax for any purchases made by state residents.
The lack of sales tax for many internet purchases gave online retailers an advantage over local and state businesses who might deal in the same areas. With the ruling, some local business are hopeful that it could be a benefit for not only their businesses, but also local communities and the state.
Kim Henley, owner of Designz by Nikki in Newton, said she feels like it could help her business and others.
“Right now, it could give online retailers an advantage over us, but this could help level the playing field with that,” Henley said. “And if you’re not collecting the 7 percent sales tax for those purchases, that’s money that our state and local governments are losing every day. That money could be used to do good in our community.”
While Henley doesn’t know how it will affect her business specifically because those sales tax regulations have been set, she does see the benefit for Newton and other locations.
“I’d like to see what the state legislature does first before I know how it will affect us, but I know it could be a good thing for everyone,” Henley said. “Hopefully, this will level the playing field between us and other online retailers. Out-of-state businesses won’t be able to do business in our area without paying sales tax, and again that tax revenue could be put to good use in our state and in Newton. I know no one likes paying more taxes, but we could at least see some benefit online sales even if online purchases are made here.”
