WASHINGTON D.C. (News4Utah)- Tuesday the House Judiciary Committee discussed the Supreme Court’s Wayfair decision which now allows states to collect sales taxes from online retailers.
But some small business owners want Congress to step in.
Congressman Bob Goodlatte says the jury is still out on how the ruling will impact small businesses.
“The court’s close and incomplete decision in Wayfair, has the potential unleash chaos for consumers and remote sellers,” Goodlatte said.
Some business owners like, Chad White, want Congress to delay the implementation of the new rules.
“I honestly do not know how we will handle this collection and remittance compliance, from a few locations to thousands across the country,” White said.
But Larry Sinewitz, with the National Retail Federation and the owner of appliance stores in south Florida, says the court’s decision will help his businesses’ slumping sales.
“Customers come into the stores, learn about the products and then purchase the products online in order to save the sales tax.”
Some lawmakers say the Supreme Court should have left the internet sales tax issue to Congress but they say since it didn’t, Congress must now get busy and create laws to make sure the taxes are fair.
The Supreme Court’s decision left one key question unanswered– whether South Dakota’s law -at the center of the Wayfair case – is itself unconstitutional.
That decision is expected from a lower court in the months ahead.