Online Purchases Tax

I will be the first to tell you that I am OBSESSED with Amazon. I do not care that they are increasing the cost of my Prime membership because I get packages at least once a week. Living in a city it is sometimes easier to just order something and have it show up at my door a couple of days later, then to go to the store and lug it across the city. 

As well, I have little patience for malls these days and tend to just order clothes online and return them as necessary. I feel like in this day and age many people can relate to these activities. 

What you need to know is...

Last week the Supreme Court made a ruling that allows states to collect sales tax from online purchases. Before if you bought a product from a company without a physical location in a state with sales tax you could order items online and not have to pay tax. However, a lot of the companies shipping these products are located in places with sales tax, which made an unfair advantage for the ones not having to charge sales tax. This will take more regulation and oversight which will make the change slow but inevitable. 

This may negatively affect businesses like Amazon where people were searching for sellers that did not charge tax in order to get big ticket items at a discount. For cheap products the sales tax should only make a small difference. How is this affecting Amazon? Their share price is down 2% already today, Monday June 25th, upon the news of this decision. We can probably expect a rebound of their stock price after the dust has settled.