Mainstreet Fairness Act or a version of it,” he said. “We’re all fortune tellers at this point.”
Costs, immediate and otherwise
As a result of the decision, both sellers and consumers are likely to see added costs, according to Jeff Glickman, partner-in-charge of the SALT practice at Top 100 Firm Aprio. “Many consumers who made purchases where sales tax was not charged may not have realized that they were required to self-remit use tax to the state — in fact, this is one of the reasons that the states almost unanimously asked the Court to overturn Quill,” he said. “Now, sales tax will likely be charged upfront, adding to the cost of goods and services purchased.“
“For sellers, there will be the immediate costs associated with working with advisors to understand their compliance obligations,” he said. “This includes updating systems and processes as necessary, deciding where they need to collect and remit, and whether their products or services are taxable and at what rates. Then there are the ongoing additional costs of compliance such as preparing and filing sales tax returns, maintaining exemption documentation, and handling more audits and notices.”
“The decision is a lightning rod,” said Mark Friedlich, CPA, Esq., senior director for tax & accounting for North America for Wolters Kluwer and a member of the Senate Finance Committee Chief Counsel’s Tax Advisory Committee on Tax Reform.
“There will be a confusing hodgepodge of different laws, which will impose an undue burden on all sellers, large and small,” he said. “Congress will have to act, even though they haven’t done so for 26 years. It won’t happen before the November midterms, but there will be a lot of pressure for them to step in and simplify the sales tax collections and compliance process by providing one set of rates and standards that apply to all states that impose the sales tax.” AT