Another big story today is a big win for communities across KELOLAND.
The nation’s highest court has sided with South Dakota.
The Supreme Court ruling means states will be able to collect more sales taxes, but some worry this could could hurt small and start up online retailers or even put them out of business.
Online retailer Wayfair lost the Supreme Court battle over whether they can be required to collect state sales taxes.
“A lot of states and cities now are going to be benefiting from whats going on,” President Donald Trump said.
But not everyone agrees with President Trump that this Supreme Court decision is a good thing.
“This supreme court ruling is going to create chaos for small business all across America,” Steve Del Bianco President & CEO of Netchoice said.
Steve Del Bianco President & Ceo, Netchoice an e-commerce trade association says small online businesses and startups will have the burden of complying with thousands of different tax codes around the country
“The supreme court has upended the apple cart and dumped the apples all over main street America,” Bianco said.
The Supreme Court justices sided with South Dakota ruling the state should be able to require online retailers to collect state sales taxes even if the business doesn’t have a physical presence in that state, saying the previous rules were outdated in an e-commerce era.
Those previous rules were based on a previous Supreme Court case Senator Heitkamp litigated for North Dakota.
“We expect that this will be billions of dollars of revenue back to the states,” said Heitkamp.
Senator Heitkamp argues the decision will actually benefit small businesses, especially brick and mortar stores on main street.
“They provide that direct employment in those communities, they deserve to have a level playing field,” said Heitkamp.
This Supreme Court case stemmed from a South Dakota law that applies to businesses doing more than $100,000 in business or more than 200 transactions in their state. but the Supreme Court decision applies nationwide.
The state of South Dakota will collect an estimated $50 million more a year as a result of this ruling.