Wisconsin plans to collect online sales tax by Oct. 1, according to an analysis. Gov. Scott Walker’s administration will begin collecting taxes for online purchases.
The analysis shows the collection will generate an additional $90 million in internet sales taxes over the next year. The new decision cut an estimated $52 income tax rate, according to an analysis released Monday by the nonpartisan Legislative Fiscal Bureau.
The industry of tax consultants, accountants, and software companies will soon get the benefit of this US Supreme Court ruling.
Walker spokeswoman Amy Hasenberg stated that the plan is to start collections by summer but we referred other questions to the Department of Revenue.
Companies such as Seattle start-up LumaTax, Avalara – a maker of sales tax software, as well as the world’s largest online retailer, Amazon could get a boost by this new ruling.
“Amazon’s been perfecting this,” stated Guru Hariharan, a former Amazon executive and founder of Boomerang Commerce which is an ecommerce software company. “They are probably the biggest experts and among the biggest controllers for state ecommerce sales taxes.”
LumaTax founder Robert Schulte said: “If you are forced to comply in 45 states and you have $1m in revenue, now I’m almost unaffordable,” “I’m going to have to rethink the way I price . . . There’s a fine line where I can deliver the service affordably yet make money.”
A 2013 law states that if the state produces new sales tax revenue resulting from “any federal law” change, then it is require cutting income tax rates. It’s unclear whether that Supreme Court decision will initiate income tax rate cut while the Fiscal bureau memo says it’s possible.