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Wisconsin May Cut Income Tax Rates to Offset Rise in Online Sales Tax Revenues
[Free Beacon] Income tax filers in Wisconsin may soon reap benefits from a recent U.S. Supreme Court decision requiring that more out-of-state online retailers collect and remit sales taxes on purchases.Remote sellers that conduct at least 200 annual transactions ‐ or annual sales topping $100,000 ‐ in Wisconsin will have to collect state sales taxes, the court ruled recently in South Dakota v. Wayfair Inc. The ruling in June overturned a previous high court decision that said such taxes need not be collected by online retailers unless they had a physical presence in the state where they were doing business. In a report sent to members of the state legislature, the Wisconsin Legislative Fiscal Bureau pointed out that current state law may require the additional sales tax revenues received as a result of the court decision be used to reduce income tax rates. Under that scenario, the average Wisconsin income tax filer would see a tax reduction of $52 annually, according to the bureau’s report. That idea now has the endorsement of Gov. Scott Walker. "Gov. Walker wants to return any additional revenues to the hardworking taxpayers," the governor’s spokeswoman, Amy Hasenberg, told Watchdog.org in an email. Whether income tax rates would be reduced to compensate for the anticipated rise in sales tax revenues, however, is still under review, according to Patricia Mayers, spokeswoman for the Wisconsin Department of Revenue. The state will not need to pass additional legislation to begin collecting the additional revenues from online retailers, Mayers said. "Wisconsin will require collection beginning on Oct. 1, 2018, consistent with existing Wisconsin statutes, which require all sellers to collect sales or use tax unless limited by federal law," she said in an email to Watchdog.org. Posted by: Besoeker 2018-08-12 |
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