Here we have yet another issue Congress has passed off onto the courts to sort out rather than doing their job to address this ongoing argument about online sales tax.
My best understanding is that in this case brought by South Dakota, the state chose to not demand it from online retailers who don't sell up to a certain threshold of dollar value of goods in their state. I did not see what that was but it sounds like small retailers are protected.
This may or may not be the case when other states act and I think the mess is about to hit the fan.
Collecting online taxes for every state would require determining over ten thousand different values and payments to all states!
If this ever does hit the small businesses they will not be able to afford the bookkeeping and reporting required to keep up with this. It could be a huge disaster that kills off all but the largest internet sales providers.
Until then, maybe it will give smaller outlets a small leg up if they do not have to collect taxes over the big guys. But, I don't see this going well until or unless Congress gets off their duffs and pass a reasonable law and/or establish an interface whereby taxes might be immediately calculated and paid on the spot. Otherwise, small online retailers' days are numbered.
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