For the first half of the year, bookstore sales were 6.1% ahead of the comparable period in 2015. According to estimates released by the U.S. Census Bureau, bookstores totaled $5.44 billion in the January-June 2016 span, up from $5.13 billion a year ago. Bookstore sales in 2016 rose every month compared to 2015, including in June when sales increased 5.0% to $770 million. The bookstore sector performed better than the entire retail segment. Sales for all of retail rose 3.3% in June over the comparable month in 2015 and were up 3.1% for the first half of 2016. The solid bookstore performance in the first six months of 2016 follows a 2.5% increase for all of 2015, the first time bookstore sales posted an annual gain since 2007.
After about two months of deliberation, the Supreme Court ruled on one of the most closely watched cases in our industry. Internet retailers like Wayfair, Amazon.com, Overstock.com, and countless others can be required to collect sales taxes in states despite having no physical presence.
Online retailers previously benefited from not having to shoulder the burden of tax collection for individual states, and the savings trickled down to consumers who saw lower prices on the goods and services they purchased online.
This will likely not be the case for much longer. The recent court decision could mean billions of dollars in additional taxes for retailers, including those that sell digital goods as well.
Why You Should Care
Prior to the ruling, e-commerce businesses voluntarily collected and remitted sales taxes on a state-by-state basis. Moving forward, e-commerce businesses that sell goods are expected to take on the responsibility of collecting and remitting state taxes for each state that requires one, whether the business has a physical presence in the individual state or not. As of now, there’s no immediate collection enforcement in place, but that doesn’t mean your business should wait to prepare for the coming changes.
For those of you selling digital goods and services online, you’ll most likely be required to adhere to the current ruling and follow the evolution of the regulation as the courts continue to decide on the definition of digital goods and services, and how to apply taxes on them. The responsibility of collecting and remitting state sales taxes will continue to be increasingly complex and challenging, especially for larger states.
To illustrate that, New York and California, which have very complex statutes on the books, will have to make significant changes to their laws. For example, there’s the requirement that sellers remit taxes to all localities, as well as the state. These requirements don’t meet the Wayfair ruling standard, and retailers may have to take the issue to court.
more at source: https://www.mytotalretail.com/article/why-you-should-care-about-the-wayfair-tax-ruling-and-how-to-ensure-compliance/