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Online sales tax has differing effects on Iowa businesses

Supreme Court ruled Thursday that states can force shoppers to pay online sales tax

Online sales tax has differing effects on Iowa businesses

Supreme Court ruled Thursday that states can force shoppers to pay online sales tax

WEBVTT online-retail. <YOU'RE SELLING SO MUCH THAT YOU'RE LIKE, 'THERE'S NO WAY THEY'RE JUST NOT GONNA CHARGE US FOREVER!'> Mike Draper - owns the Des Moines-based sensation 'Raygun' <NATS showing online office> Online sales - account for 25- percent, of Raygun's business. Thursday - the supreme court announced It will now allow states, to impose sales- taxes on all online-sales. <THE IDEA IS IF YOU LIVE IN MINNESOTA, AND YOU BUY ONE OF OUR SHIRTS, IT'S 7 OR 8 PERCENT LESS, CURRENTLY, THAN IF MINNESOTA STARTED CHARGING US A SALES-TAX.> States, are set to rake-in Billions some argue, hurting small- businesses. But some Iowans - don't see it, that way ... Cindy Lane, owns 'Cindy's Boutique.' <FOCUS IS ON SALE, DRESSES ARE ON-SALE.> <DID YOU HEAR THE SALE? 25- PERCENT OFF, LOTS OF STUFF.> She doesn't sell anything online... <I THINK IT'S GONNA BE GREAT THAT PEOPLE AREN'T GONNA SIT AT HOME AND SHOP ONLINE. IF THEY THINK THEY'RE GETTING A GOOD DEAL - NOW, THEY HAVE TO PAY TAX, AND THEY'LL COME TO MY SMALL BUSINESS.> But small-businesses like Raygun, that do sell online... now may have to account for up to 50-different sales-tax rates. <SOME PEOPLE WILLS SAY, 'OH, THIS IS GONNA BE TOO COMPLICATED FOR BUSINESS.> Online shoppers, will cover the additional cost... <I MIGHT NOT SHOP AS MUCH AS I DID BEFORE.> <IT WAS JUST NICE SHOPPING ONLINE AND NOT HAVING TO PAY THE SALES TAX.> But National retailers - will now have to pay Iowa's state sales-tax, as well. And Draper says... THAT, could help Iowa businesses, compete. <CHARGING OUT-OF-STATE COMPANIES SALES-TAX TO DO BUSINESS IN IOWA CERTAINLY LE
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Online sales tax has differing effects on Iowa businesses

Supreme Court ruled Thursday that states can force shoppers to pay online sales tax

Online purchases from other states will likely become more expensive after the U.S. Supreme Court ruled Thursday that states can collect taxes from online retailers.Individual states can compel internet sellers to collect sales tax regardless of whether they have a physical presence in the state. The decision overrules a 1992 Supreme Court precedent, which means regulation may be coming to the "Wild West" of online retail."You're so much that you're like, 'There's no way they're just not going to charge us forever," said Mike Draper, owner of Des-Moines based Raygun. Online sales account for 25 percent of Raygun's business. The Supreme Court announced it will allow states to impose sales taxes on all online sales from other states."The idea is, if you live in Minnesota, and you buy one of our shirts, it's 7 or 8 percent less, currently, than if Minnesota started charging us a sales tax," Draper said.States are set to rake in billions of dollars. Some people argue that it will hurt small businesses in the process. But some Iowans, such as Cindy Lane, who owns Cindy's Boutique, don't see it, that way. Her business doesn't sell anything online."I think it's going to be great that people aren't going to sit at home and shop online," Lane said. "If they think they're getting a good deal, now they have to pay tax, and they'll come to my small business."But small businesses that do sell online, like Raygun, may have to account for up to 50 different sales tax rates."Some people will say, 'Oh, this is going to be too complicated for business," Draper said.Law experts say Amazon will benefit from the ruling because it’s already required to collect sales taxes in every state. There are only five states without a sales tax.

Online purchases from other states will likely become more expensive after the U.S. Supreme Court ruled Thursday that states can collect taxes from online retailers.

Individual states can compel internet sellers to collect sales tax regardless of whether they have a physical presence in the state. The decision overrules a 1992 Supreme Court precedent, which means regulation may be coming to the "Wild West" of online retail.

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"You're so much that you're like, 'There's no way they're just not going to charge us forever," said Mike Draper, owner of Des-Moines based Raygun. Online sales account for 25 percent of Raygun's business. The Supreme Court announced it will allow states to impose sales taxes on all online sales from other states.

"The idea is, if you live in Minnesota, and you buy one of our shirts, it's 7 or 8 percent less, currently, than if Minnesota started charging us a sales tax," Draper said.

States are set to rake in billions of dollars. Some people argue that it will hurt small businesses in the process. But some Iowans, such as Cindy Lane, who owns Cindy's Boutique, don't see it, that way. Her business doesn't sell anything online.

"I think it's going to be great that people aren't going to sit at home and shop online," Lane said. "If they think they're getting a good deal, now they have to pay tax, and they'll come to my small business."

But small businesses that do sell online, like Raygun, may have to account for up to 50 different sales tax rates.

"Some people will say, 'Oh, this is going to be too complicated for business," Draper said.

Law experts say Amazon will benefit from the ruling because it’s already required to collect sales taxes in every state. There are only five states without a sales tax.