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NC Retail Supports Supreme Court Decision that “A Sale Is A Sale”

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States May Now Require Sales Tax from ALL Retailers

RALEIGH, NC – The North Carolina Retail Merchants Association (NCRMA) issued the following statement from Andy Ellen, president and general counsel, regarding the ruling by the United States Supreme Court in the case of Wayfair v. South Dakota which will allow states to require online retailers to collect sales tax the same as North Carolina’s brick and mortar stores.

“For 25 years, since the Quill decision, we have stood firm in our belief that regardless of where a sale occurs, a sale is a sale and sales tax should be applied to every sale made to a North Carolina consumer. Main Street retailers that employ your neighbors, pay property tax and support the little league team and high school band have long been required to collect sales tax that online stores did not, putting them at an automatic disadvantage. The U.S. Supreme Court’s decision will allow all retailers to operate on a level playing field.

“In addition, this is also a huge boost to the states. It is estimated that North Carolina loses over $400 million in sales tax each year to remote sales where sales tax is owed but not collected. To now be allowed to collect sales tax from online sellers will provide much needed revenue to the state.

“NCRMA is pleased the U.S. Supreme Court has overturned the Quill decision and recognizes the global economy in which we live. This decision will reinstate some equity into our economy rather than continuing to reward companies with an unfair advantage as they compete with North Carolina businesses while contributing nothing to North Carolina’s economy.”

NCRMA Chairman of the Board Steve Ashworth, third-generation owner of Ashworth’s Clothing in Fuquay-Varina, NC, said “As a small town, main street retailer, I can tell you that my commitment is to my community, where I live and operate. I believe that the Supreme Court has leveled the playing field for me, and other retailers like me, who have been at a disadvantage compared to internet retailers who weren’t required to collect sales tax.”

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