LINCOLN, Neb. (AP) — The U.S. Supreme Court’s decision to let states collect sales tax from online purchases could lead to Nebraska putting the money toward property tax relief.
The high court ruled Thursday that states can force companies operating online to collect taxes, reversing decades-old decisions that had stymied efforts to collect sales taxes on many online transactions.
Gov. Pete Ricketts indicated that he’s determined to convert the potential revenue into local property tax relief, not state programming.
“Any increased revenue attributable to total enforcement of our sales tax laws must be steered toward property tax relief,” Ricketts said.
Sen. Tom Briese of Albion said he’ll introduce an internet sales tax bill next year to direct the additional revenue toward property tax relief.
Legislation to begin collecting online sales tax beginning July 1 was blocked by a filibuster earlier this year. The measure would have required online retailers to send customers a notice of their total taxable purchases unless the businesses collected the sales tax themselves.
Ricketts had recommended that the state wait for the Supreme Court decision as a compromise. Now state officials will have to wait until next year to begin collections.
State Sen. Dan Watermeier, a sponsor of the legislation, said he’s frustrated by the delay. The state could bring in up to $40 million more per year from taxing online sales, he estimated.
Nebraska Retail Federation President Jim Otto applauded the ruling as a move that levels the playing field between brick-and-mortar stores, which collect sales taxes, and online retailers, which often don’t.
“The Supreme Court has acted correctly in recognizing that it’s time for outdated sales tax policies to change with the times,” Otto said.
Otto said that Congress or state legislatures now need to set the threshold at which online retailers must collect taxes.