Online retailers registering to pay Vermont sales tax

Published: Aug. 23, 2018 at 4:06 PM EDT
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An update on a Supreme Court decision that aimed to level the playing field between online retailers and bricks-and-mortar stores.

Starting July 1, large online retailers who previously didn't have to pay Vermont sales tax because they didn't have a physical presence in the state, now have to pony up. That's thanks to a U.S. Supreme Court decision earlier this summer which sided with states.

While the Vermont Tax Department won't have numbers until later this month on how much of a bump in revenue they'll get from that decision, they can measure how many more retailers are signing up.

"We are tracking some of the larger retailers that we knew were not registered with us that we strongly suspect should be registered with us based on the thresholds in the law, which is $100,000 of sales into Vermont or 200 transactions. So, we are seeing favorable results of large retailers registering with us, as well," Vt. Tax Commissioner Kaj Samsom said.

The tax department estimates about $2 million to $6 million more will be brought in for sales tax this year because of retailers complying with the new law.