New sales tax ruling to spike retail prices online - FOX5 Vegas - KVVU

New sales tax ruling to spike retail prices online

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Online shoppers may have to pay a little more at checkout due to a decision from the highest court in the land. 

“I shop online because of the convenience,” consumer Dawn King said. 

The Supreme Court overturned an old rule that said online stores need to have a physical location in the state to collect tax. The court ruled that states can now require online retailers to collect sales tax from their customers. 

According to the Nevada Department of Taxation, the rule could increase the states sales tax collections by nearly $30 million annually. 

Valley economist Stephen Miller said he was not surprised.

“This is a long time coming, and a necessary step. The main issue is the competition between online retailers and brick and mortar retailers," Miller said.

Miller is the director of the University of Nevada Las Vegas Center for Business and Economic Research. He said because they didn’t have to collect sales tax, many e-retailers had a competitive advantage over brick and mortar stores.

Miller said this ruling could bring the two closer to being equal. 

“Their profitability may go up slightly." “For the retailers, in the state, it’s probably a win.”

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