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Question of sales tax on online purchases goes to high court
Attorney News |
2018/04/15 13:08
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Online shoppers have gotten used to seeing that line on checkout screens before they click "purchase." But a case before the Supreme Court could change that.
At issue is a rule stemming from two, decades-old Supreme Court cases: If a business is shipping to a state where it doesn't have an office, warehouse or other physical presence, it doesn't have to collect the state's sales tax.
That means large retailers such as Apple, Macy's, Target and Walmart, which have brick-and-mortar stores nationwide, generally collect sales tax from customers who buy from them online. But other online sellers, from 1-800 Contacts to home goods site Wayfair, can often sidestep charging the tax.
More than 40 states are asking the Supreme Court to reconsider that rule in a case being argued Tuesday. They say they're losing out on "billions of dollars in tax revenue each year, requiring cuts to critical government programs" and that their losses compound as online shopping grows. But small businesses that sell online say the complexity and expense of collecting taxes nationwide could drive them out of business.
Large retailers want all businesses to "be playing by the same set of rules," said Deborah White, the president of the litigation arm of the Retail Industry Leaders Association, which represents more than 70 of America's largest retailers.
For years, the issue of whether out-of-state sellers should collect sales tax had to do mostly with one company: Amazon.com. The online giant is said to account for more than 40 percent of U.S. online retail sales. But as Amazon has grown, dotting the country with warehouses, it has had to charge sales tax in more and more places.
President Donald Trump has slammed the company, accusing it of paying "little or no taxes" to state and local governments. But since 2017, Amazon has been collecting sales tax in every state that charges it. Third-party sellers that use Amazon to sell products make their own tax collection decisions, however.
The case now before the Supreme Court could affect those third-party Amazon sellers and many other sellers that don't collect taxes in all states — sellers such as jewelry website Blue Nile, pet products site Chewy.com, clothing retailer L.L. Bean, electronics retailer Newegg and internet retailer Overstock.com. Sellers on eBay and Etsy, which provide platforms for smaller sellers, also don't collect sales tax nationwide.
States generally require consumers who weren't charged sales tax on a purchase to pay it themselves, often through self-reporting on their income tax returns. But states have found that only about 1 percent to 2 percent actually pay. |
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High court worries about abandoning online sales tax rule
Topics in Legal News |
2018/04/12 13:06
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The Supreme Court sounded concerned Tuesday about doing away with a rule that has meant shoppers don't always get charged sales tax when they hit "checkout" online.
The justices were hearing arguments in a case that deals with how businesses collect sales tax on online purchases at sites from Amazon.com to Zappos. Right now, under a decades-old Supreme Court rule, if a business is shipping a product to a state where it doesn't have an office, warehouse or other physical presence, it doesn't have to collect the state's sales tax. Customers are generally supposed to pay the tax to the state themselves if they don't get charged it, but the vast majority don't.
More than 40 states have asked the Supreme Court to abandon its current sales tax collection rule , saying that as a result of it and the growth of internet shopping, they're losing billions of dollars in tax revenue every year.
But several Supreme Court justices suggested during arguments Tuesday that they had concerns about reversing course.
"I'm concerned about the many unanswered questions that overturning precedents will create a massive amount of lawsuits about," Justice Sonia Sotomayor told South Dakota Attorney General Marty Jackley, who was arguing for the court to do away with its current rule.
Chief Justice John Roberts pointed to briefs suggesting the problem of sales tax collection "has peaked" and may be "diminishing rather than expanding." ''Why doesn't that suggest that there are greater significance to the arguments" that the court should leave its current rule in place, he asked.
The fact that Congress could have addressed the issue and has so far hasn't, Justice Elena Kagan said, "gives us reason to pause." Congress can deal with the issue in a more nuanced way than the court, she said, saying Congress is "capable of crafting compromises and trying to figure out how to balance the wide range of interests involved here."
Large retailers such as Apple, Macy's, Target and Walmart, which have brick-and-mortar stores nationwide, generally collect sales tax from their customers who buy online.
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Michigan Democrats back Nessel for state attorney general
Attorney News |
2018/04/11 13:09
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Thousands of fired-up Michigan Democrats endorsed Dana Nessel on Sunday in a hotly contested race for state attorney general, backing the former prosecutor-turned-civil rights lawyer to wrest back control of an office the party last held 16 years ago.
If elected in November, Nessel — who helped mount a successful legal challenge to the state's same-sex marriage ban — would be Michigan's first openly gay statewide officeholder. She defeated Pat Miles, the former U.S. attorney for western Michigan in the Obama administration, in a fight that drew a record number of delegates to Detroit.
"I want to bring empathy back to the office of Michigan attorney general," Nessel said after her victory inside a packed convention hall in the Cobo Center, where she became the rare candidate to win a convention fight despite not being supported by the influential United Auto Workers union and Michigan AFL-CIO, which had backed Miles. "With the help of not just Democrats in the state but independents and yes, even Republicans, I think we can do that and I look forward to being able to try."
The 48-year-old Nessel, who was a Wayne County assistant prosecutor for 11 years, co-owns a small Detroit law firm that among other things focuses on criminal defense, family law and adoptions for same-sex couples. Barring a surprise, she will be officially nominated at Democrats' next convention in August and face a Republican nominee — either state House Speaker Tom Leonard or state Sen. Tonya Schuitmaker — in the November election. GOP Attorney General Bill Schuette cannot run again due to term limits and is instead vying for governor.
Nessel's win sets the stage for a female-dominated Democratic statewide ticket if favorite Gretchen Whitmer wins the gubernatorial primary election in August. Democrats, who flooded the convention despite icy, rainy weather, also endorsed Jocelyn Benson for secretary of state in an uncontested race, and U.S. Sen. Debbie Stabenow is running for re-election to a fourth term.
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Dayton appoints Democratic Rep. Thissen to Supreme Court
Legal Business |
2018/04/11 13:06
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Gov. Mark Dayton appointed longtime Democratic state Rep. Paul Thissen to the Minnesota Supreme Court on Tuesday, the latest in a long line of partisans to join the state's highest court.
Thissen is an attorney and Minneapolis lawmaker who has served eight terms in the House — including one as House Speaker and two as its Minority Leader — and had eyes on the governor's office until he suspended his campaign in February. He'll resign from his House seat on Friday and join the court soon after.
He replaces Justice David Stras, who was nominated by Donald Trump to the 8th U.S. Circuit Court of Appeals and recently confirmed. Thissen's addition means Dayton has picked five of the seven members on the state's highest court, and while the court has not been openly partisan, it's a mark that will long outlast the Democratic governor's tenure ending early next year.
The other two members were appointed by former Republican Gov. Tim Pawlenty.
"Judicial appointments are one of, if not the most, important appointments I make," Dayton said, noting he had emphasized increasing the diversity throughout state courts during his time in office.
Thissen was one of four finalists on the shortlist to replace Stras that also included Lucinda Jesson, Dayton's former commissioner at the Department of Human Services who he appointed to the Minnesota Court of Appeals in 2016. Minnesota Tax Court Chief Judge Bradford Delapena and District Court Judge Jeffrey Bryan were also in the running.
Dayton and others said Thissen's blend of legal work and political experience made him the perfect choice for the Supreme Court.
"Under the intense pressures of end of session deal-making, he always stood firm on his own principled convictions and to the high standards of proper Minnesota governance," Dayton said.
Neither Dayton nor his predecessors have shied away from party allies when filling seats on the state's highest court. Dayton appointed longtime Democratic attorney David Lillheaug to the court in 2013. Lillehaug helped Dayton during his 2010 recount victory and also worked on former Sen. Al Franken's 2008 recount and other Democratic elections. Pawlenty named both his campaign attorney Christopher Dietzen and Minnesota Republican Party attorney Barry Anderson to the Supreme Court. |
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Supreme Court rejects anti-abortion pastor's appeal on noise
Headline Legal News |
2018/04/10 13:06
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The Supreme Court won't hear an appeal from a pastor who challenged a state law's noise limit that was used to restrict his anti-abortion protest outside a Planned Parenthood clinic in Portland, Maine.
The justices offered no comment Monday in rejecting the appeal from the Rev. Andrew March. He sued after he said Portland police officers repeatedly told him to lower his voice while he was protesting outside the clinic. March says police invoked a part of the Maine Civil Rights Act that applies to noise outside health facilities.
March says the law "targets pro-life advocates" in violation of the Constitution. A district judge temporarily blocked its enforcement, but the federal appeals court in Boston reversed that ruling.
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