Category: Tax

A Changed World: The Supreme Court Permits State and Local Taxation of Online Sales by Retailers with No State Presence

A Changed View of Online Sales Tax for Out-of-State Retailers
With the growing and evolving retail world, which we have  discussed   before , one thing had remained constant: retailers did not have to collect sales tax for online sales to states in which they had no physical presence. Thanks to the Supreme Court, that principle  had  remained a...
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What Does Tax Reform Mean for Retail?

We all know now that the federal corporate tax rate for many retailers is dropping this year from an industry effective average rate of 32.9% to 21%, as a result of changes implemented by the so-called “Tax Cuts and Jobs Act” which was signed into law on December 22,...
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To Tax or Not to Tax Internet Retailers, that is the Question

Since the dawn of the age of e-commerce, brick-and-mortar retailers have championed “the level playing field”. Their battle cry: Internet retailers should be subject to sales tax just like us! This disparity is largely the result of a 1992 US Supreme Court decision, Quill Corp. v. North Dakota ,...
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The (Border) Adjustment Bureau: Hold On to Your (Imported) Hats

Retailers would be wise to pay close attention to the upcoming tax-plan deliberations of the 115th U.S. Congress. A proposal currently being considered would adjust the U.S. corporate tax by making imports a non-deductible expense. This adjustment is intended to create incentives for domestic production, as companies would no...
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New Lease Accounting Rules Are Final: Retailers and, Ultimately, Landlords Can Expect Changes

We recently wrote about expected changes to the rules governing the way leases are accounted for on balance sheets and suggested the changes would have major implications for retailer tenants and longer term implications for landlords. Late last week, as expected, the Financial Accounting Standards Board (“FASB”) issued a...
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Uber Drivers: Employees or Independent Contractors?

Since its founding in 2009, Uber has gained both praise and notoriety for shaking up the taxi industry by allowing individuals who meet minimum requirements to provide an on-demand car service via the Uber mobile app.  In December 2014, there were 162,037 active Uber drivers in the United States...
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Internet Sales Tax Update: Senate Introduces Marketplace and Internet Tax Fairness Act

Senators Enzi, Durbin, Alexander, Heitkamp, Collins and Pryor introduced the Marketplace and Internet Tax Fairness Act (MITFA) and the retail industry is listening! Two of the largest retail industry trade groups in the U.S., the Retail Industry Leaders Association and National Retail Federation, urged Congress to pass a combined...
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Report: Internet Sales Taxes Hit Amazon, but Not to Brick and Mortar Benefit

A recent report indicates that new state taxes imposed on purchases from online retailer Amazon drove down purchases from Amazon by almost 10%. The report compared Amazon sales figures in 5 states which recently started collecting taxes from Amazon sales, to online sales before the implementation of taxes and...
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Internet Sales Tax Hangs In the Balance In the House of Representatives

On May 6, 2013, the United States Senate overwhelming passed the controversial Marketplace Fairness Act of 2013 (S.743) (the “Act”) by a 69-27 vote, despite strong opposition from online retailers like eBay and small businesses who rely primarily on online sales, sending it to House of Representations for consideration...
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