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You Can Thank Amazon for the Recent Supreme Court eCommerce Sales Tax Ruling

948 views · Published 25 June 2018 · 12:38 · Indexed 24 October 2026

Channel: Rules For Rebels · 2018 · Howto & Style

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Hey guys, it's Monday, back to the grind. I just got back into town, was down at Indiana Beach over the weekend with my family so been away for a few days.

Prior to leaving on Friday I had made two videos about the recent Supreme Court Sales Tax rulings allowing states to force ecommerce merchants to collect sales tax, even if they don't have a Nexus or a physical presence in that state. This is huge as going back  years a court case Quill vs. North Dakota ruled that if a company doesn't have a physical presence in a state they didn't have to collect sales tax in that state meaning most small businesses and ecommerce merchants only had to collect sales tax in their own state.

For example, I'm in Illinois, I don't have any warehouses or offices anywhere else so I have to collect sales tax from Illinois customers but not customers from any of the other states that have a state sales tax This recent ruling means myself as well as all of you will have to collect sales tax and start doing that for all states. 

In this video we talk about how Amazon has spent millions of Dollars lobbying to have this law passed and make our lives more difficult, which furthers my strong belief Amazon is not our friend. While you can make money on Amazon, never trust Amazon and never rely on Amazon. Amazon is concerned with Amazon not you, they aren't your partner and they aren't your friend.

It's kind of ironic too, because earlier in Amazon's life they were notorious for finding clever ways to keep a nexus in few states and avoid sales taxes. They battled states in court. But as normally happens once they become large enough and have as much of a stronghold on ecommerce as they do, now they want to help change the rules to make things more difficult on smaller retailers.

There lobbying has 2 purposes, to make sure if consumers have to pay sales tax on Amazon purchases they'll have to pay sales taxes on every other store as well, and this also serves to knock out a lot of competition as many small ecommerce shops won't be able to keep up with these reporting requirements or won't find it worth it to do and will close up shop so it also gets rid of a lot of competition.

In this video I also give a brief update on my Pop Socket sales.

What's your thoughts on this issue? How do you see states rolling out new sales tax rules? Drop a comment below and tell us all about it.

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