MN House tax chair says Supreme Court ruling on sales tax could lead to tax cuts

"Hopefully will take that money and reduce taxes."

Al Schoch
June 21, 2018 - 11:49 am

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The US Supreme Court decided Thursday that states can force online shoppers to pay sales tax.

In a 5-4 ruling, the high court overturned those decisions that resulted in some online retail companies not collecting sales tax on every purchase.

"I think the Supreme Court was right on, it's about time," said state Rep. Greg Davids (R-Preston), who chairs the House tax committee. "The mainstream brick-and-mortar businesses that collect sales tax had an unfair situation."

Davids called it an issue of fairness.

"Now, with that extra windfall, $150 million, whoever comes back in the legislature in 2019 hopefully will take that money and reduce taxes," he said.

States without income tax like South Dakota are calling it a major victory for tax fairness, as are trade groups like the National Retail Federation.

The stock prices of Amazon and other online retailers slid after the ruling