How internet sales tax ruling saves shopping malls, mom and pop retail
The Supreme Court ruling on Thursday that gave states the authority to require online retailers to collect sales tax on out-of-state online purchases is a big win for the broader economy, especially small business retailers, according to retail experts.
In South Dakota vs. Wayfair, small business retailers argued a 1992 ruling put them at a disadvantage over online retailers who were not required to collect sales taxes in states where they had no physical presence.
The biggest winner is municipalities who will have the ability to levy taxes at a point of sale, according to Strategic Resource Group Managing Director Burt Flickinger, but it will also save shopping centers and many anchor retailers.
“It’s pro-consumer, it’s commercially and ethically and economically a very good decision,” Flickinger told FOX Business’ Tracee Carrasco on “FBN AM” on Friday.
PwC partner Mitch Roschelle added that small business retailers will boost the economy.
“You can look at the big box names,” he said. “But the fact of the matter is retailing is very much a mom and pop small business and if this helps them, it helps the overall economy create and sustain jobs.”
Brick-and-mortar retailer stocks rose after the ruling, while online retailers dropped.