Steve DelBianco, president and CEO of NetChoice, a Washington D.C.-based trade group representing online retailers such as Overstock.com, eBay and PayPal, says Massachusetts and other states are attempting to squeeze more from retailers than the court’s decision allows by “cutting and pasting” South Dakota’s threshold for collecting sales taxes.
DelBianco said the $100,000 threshold set by the Supreme Court ruling was based on South Dakota’s economy and can’t be applied to wealthier states.
“Massachusetts has 10 times the gross domestic product as South Dakota,” he said.
“They ought to be increasing the threshold to follow the proportional size of the state. It should really be $1 million.”
He expects a lawsuit to challenge states that drop their thresholds to collect more revenue.