We collect cookies to analyze our website traffic and performance; we never collect any personal data. Cookie Policy
Accept
The Tycoon Herald
  • Trending
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Money
    • Crypto / NFT
  • Innovation
  • Lifestyle
    • Lifestyle
    • Food
    • Travel
    • Fashion
    • Leadership
  • Health
  • Sports
  • Entertainment
Reading: Sales Taxes In 2022 — Issues To Watch For Online Retailers
Sign In
The Tycoon HeraldThe Tycoon Herald
Font ResizerAa
Search
  • Trending
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Money
    • Crypto / NFT
  • Innovation
  • Lifestyle
    • Lifestyle
    • Food
    • Travel
    • Fashion
    • Leadership
  • Health
  • Sports
  • Entertainment
Have an existing account? Sign In
Follow US
© Tycoon Herald. All Rights Reserved.
Sales Taxes In 2022 — Issues To Watch For Online Retailers
The Tycoon Herald > Business > Sales Taxes In 2022 — Issues To Watch For Online Retailers
BusinessMoney

Sales Taxes In 2022 — Issues To Watch For Online Retailers

Tycoon Herald
By Tycoon Herald 6 Min Read
Share
SHARE

Photo by Christian Ohde/McPhoto/ullstein bild via Getty Images)

ullstein bild via Getty Images

States are seeing double digit growth in sales tax revenue, a trend that has been fueled in part by changes in consumer spending during the pandemic. 

Contents
Some localities can make their own sales tax rulesAnother sales tax case could go to the U.S. Supreme CourtMore efforts to simplify sales taxesMore sales tax reporting accountability

According to the latest data from the Urban Institute, 42 states reported higher sales tax revenue from April–September versus the same period in 2020. What’s more, an incredible 27 states reported annual growth of over 20% during that period.

States also ended their fiscal years on a high. According to a new report by the National Association of State Budget Officers, median sales tax revenue grew by more than 9% in fiscal 2021, which ended June 30. Many states reported double-digit growth.

There are a few reasons for this jump. For one, the pandemic curtailed spending on services — most of which aren’t taxed. Instead, many Americans redirected their spending on stuff like new furniture, gardening supplies or materials for home improvement projects, which are taxed. Two, government stimulus checks pumped more spending money into the economy for those who weren’t financially hurt by the pandemic. 

And three, almost all states that collect a sales tax are now doing so for online sales thanks to a 2018 Supreme Court decision. In July of this year, Missouri became the last state to enable an online sales tax, (but it won’t start seeing that revenue until 2023).

Given these trends, consumers and retailers should know what’s on the horizon for 2022. Here are some of the top sales tax issues to watch in the coming year.

Some localities can make their own sales tax rules

Cities and counties in many places can have their own sales tax rate, but most follow the taxing rules of their state. This means that whatever parameters the state legislature has set for who is responsible for collecting and remitting sales taxes for online sales automatically applies to localities. 

MORE FOR YOU

But five states — Alabama, Alaska, Arizona, Colorado, and Louisiana — allow localities to have total home rule. (Not all of them opt in though. In Colorado, for example, 97 of the state’s 272 municipalities have home rule.) Those that do, says Vertex Inc.’s Michael Bernard, are likely to consider creating their own online sales tax rules. The result could be that one transaction would carry different tax responsibilities. For example, a sale on Amazon’s AMZN marketplace could require the facilitator (Amazon) to remit the local sales tax to the corresponding locality, while the individual retailer is responsible for remitting the state sales tax. 

Another sales tax case could go to the U.S. Supreme Court

Louisiana’s complex sales tax structure is now the target of a lawsuit that could force states to modernize their tax codes. The case, Halstead Bead v. Lewis is filed in the Eastern District Court of Louisiana and backed by three conservative-leaning groups: the National Taxpayers Union Foundation (NTUF), the Goldwater Institute in Arizona and the Pelican Institute in Louisiana.

Halstead, an Arizona-based bead maker, argues that “the fragmented nature of the Louisiana sales tax collection system” is an undue burden on his business. The company estimates that it costs $2.28 to comply with Louisiana’s tax system for every $1 it collects in sales taxes. The NTUF, which advocates for simplifying tax codes, says states should be required to “modernize their tax systems before they demand that businesses comply with them.”

More efforts to simplify sales taxes

States and localities outside Louisiana are undoubtedly keeping an eye on the Halstead case. Those with more complicated systems may be more motivated to make some changes ahead of any ruling. For example, a law that went into effect this year in New Mexico created a statewide uniform state/local tax rate for out-of-state retailers. Some states may decide to do something similar. Another possibility is the Streamlined Sales and Use Tax Agreement (SSUTA), which calls for simplifying state and local tax definitions and rates to minimize costs and administrative burdens on retailers. More than half (23) of the 44 states that have a sales tax have conformed to SSUTA.

More sales tax reporting accountability

It has been more than three years since the landmark Supreme Court ruling allowing states to tax online sales and some experts say the honeymoon period is over. “States are now truly ready to [start] being fairly aggressive in their enforcement against existing online sellers,” says Charles Maniace, a vice president at the tax software firm Sovos.

He pointed to California, Illinois, Maine, Massachusetts, New Jersey, New York, Ohio, Washington and Wisconsin as states that he is watching for stepped-up enforcement. Established small businesses now registering as an online seller in a state should expect to be questioned about their online sales activities post-2018, and whether they have business activity to report from the past three years.

You Might Also Like

Joseph Safina’s Driven Becomes Amazon Bestseller, Blending High Finance with High Speeds

How To Make A Funds: 12 Simple Methods To Do It (The Full Information) – Dollarsanity

10 Outdated-Normal Cleansing Suggestions from Grandma – Dollarsanity

Fashion Designer Hyeonseo Irene Park: Redefining Menswear Through Originality and Collaboration

From Pattaya to the World: Bryan Flowers’ Unstoppable Rise as a Global Entrepreneur

TAGGED:Real EstateThe Forbes Journal
Share This Article
Facebook Twitter Email Copy Link Print
Netherlands Girls 2-5 France Girls: Delphine Cascarino leads cost as France end prime of Group D at Euro 2025
Sports

Netherlands Girls 2-5 France Girls: Delphine Cascarino leads cost as France end prime of Group D at Euro 2025

Delphine Cascarino led the cost as France Girls beat Netherlands Girls 5-2 of their remaining Group D sport, ending prime of the standings.The French have received all of their group…

By Tycoon Herald 3 Min Read
Justin Baldoni Says Blake Full of life is Attempting to Use ‘Celeb Standing’ to Dictate Deposition Locale
July 13, 2025
Menendez Brothers May Have Their Homicide Convictions Thrown Out
July 13, 2025
England Ladies 6-1 Wales Ladies: Lionesses to face Sweden in Euro 2025 quarter-finals after Dragons thrashing
July 13, 2025
Ariana Madix Cries Whereas Speaking About Powerful ‘Love Island’ Season
July 13, 2025

You Might Also Like

Wedding ceremony On A Funds: Get K-Like Wedding ceremony For K or Much less – Dollarsanity
Money

Wedding ceremony On A Funds: Get $30K-Like Wedding ceremony For $5K or Much less – Dollarsanity

By Tycoon Herald 19 Min Read
Astana International Forum 2025: “Connecting Minds, Shaping the Future”
BusinessTrending

Astana International Forum 2025: “Connecting Minds, Shaping the Future”

By Tycoon Herald 3 Min Read
80 Issues I Stopped Shopping for to Save Money Quick and Pay Off Debt – Dollarsanity
Money

80 Issues I Stopped Shopping for to Save Money Quick and Pay Off Debt – Dollarsanity

By Tycoon Herald 38 Min Read

More Popular from Tycoon Herald

MEET THE FATHER OF COADUNATE ECONOMIC MODEL
BusinessTrending

MEET THE FATHER OF COADUNATE ECONOMIC MODEL

By Tycoon Herald 2 Min Read
Woman Sentenced to 7 Days in Jail for Walking in Yellowstone’s Thermal Area

Woman Sentenced to 7 Days in Jail for Walking in Yellowstone’s Thermal Area

By Tycoon Herald
Empowering Fintech Innovation: Swiss Options Partners with Stripe to Transform Digital Payments
InnovationTrending

Empowering Fintech Innovation: Swiss Options Partners with Stripe to Transform Digital Payments

By Tycoon Herald 7 Min Read
Sports

David Grey: Struggling Hibernian again head coach regardless of poor begin to Scottish Premiership season

Hibernian's under-fire head coach David Grey has obtained the backing of the membership's board.Ex-captain Grey watched…

By Tycoon Herald
Leadership

How Abu Fofanah Has Helped Nearly 10,000 Entrepreneurs Gain Visibility

Abu Fofanah Abu Fofanah November 27, 2021 is Small Business Saturday; a day designated to “celebrate…

By Tycoon Herald
Trending

U.S. Blew Up a C.I.A. Post Used to Evacuate At-Risk Afghans

A controlled detonation by American forces that was heard throughout Kabul has destroyed Eagle Base, the…

By Tycoon Herald
Leadership

Northern Lights: 17 Best Places To See Them In 2021

Who doesn’t dream of seeing the northern lights? According to a new survey conducted by Hilton, 59% of Americans…

By Tycoon Herald
Real Estate

Exploring Bigfork, Montana: A Little Town On A Big Pond

Bigfork, Montana, offers picturesque paradise in the northern wilderness. National Parks Realty With the melting of…

By Tycoon Herald
Leadership

Leaders Need To Know Character Could Be Vital For Corporate Culture

Disney's unique culture encourages young employees to turn up for work with smiles on their faces.…

By Tycoon Herald
The Tycoon Herald

Tycoon Herald: Your instant connection to breaking stories and live updates. Stay informed with our real-time coverage across politics, tech, entertainment, and more. Your reliable source for 24/7 news.

Company

  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • WP Creative Group
  • Accessibility Statement

Contact Us

  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability

Terms of Use

  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices
© Tycoon Herald. All Rights Reserved.
Welcome Back!

Sign in to your account

Lost your password?