COLUMBUS, Ohio–Last month’s U.S. Supreme Court ruling that states can collect sales taxes on online purchases from out-of-state retailers could mean millions in extra money for Ohio counties and transit authorities.
But no one is expecting a flood of new local sales tax revenue to arrive anytime soon.
Until now, Ohio and other states have only been allowed to collect online sales taxes from businesses that have a physical presence in the state – such as Amazon, which operates warehouses and data centers here.
But on June 21, the Supreme Court upheld a South Dakota law requiring sales tax to be collected on all online sales from companies that do a certain amount of business within the state, whether or not they have a physical presence.
If Ohio decides to expand its tax-collection rules to more closely resemble South Dakota’s law, it could not only mean more money for the state, but also for Ohio’s 88 counties and eight transit authorities that impose their own, separate “piggyback” sales taxes on top of the state’s 5.75-percent tax.
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