An official in the revenue cabinet says state government is benefitting from new online sales taxation methods. But, Richard Dobson, director in the Office of Sales and Excise Taxes, says it would not be considered a tax windfall.
A U.S. Supreme Court ruling this summer stated e-commerce company WayFair.com owed sales tax in South Dakato. Dobson says the Kentucky general assembly earlier this year approved legislation aimed at collecting out of state on-line sales tax revenue. “Things converged in a manner that put Kentucky in a good position as far as taking advantage of the simplicity and the uniformity that was coming as a result of the court decision as well as the legislation,” said Dobson.
While Cyber Monday retail sales might be cited as an example of how Kentucky benefits from the court ruling and law, Dobson says it’s simply the collection of taxes that were already due.
The state revenue official says it’s not the imposition of new taxation and some retailers were already voluntarily passing along sales taxes to state government.