Nevada now taxing internet sales

RENO, NV (KOLO) To call Junkee Clothing Exchange a unique experience would be an understatement. Locally they corner the market on used clothing and costumes. But they do carry items direct from manufacturers, items that probably can be located and purchased on the internet.

The average amount each person spent while drunkenly shopping hit $736 in 2019, up almost 65 percent from the year before. (Source: Pixabay/MGN)

Now in Nevada, in many cases, those items will have a sales tax attached to them, just like in the store.

“And so it just kind of levels it out. It is definitely beneficial to the market, you know. For consumers and brick and mortar retailers alike,” says Nichole Paul with Junkee.

In early summer 2018, the U.S Supreme Court ruled states could start attaching their sales tax to internet sales. Effective October 2018, Nevada started the process.

Remote Sellers, as they are called, must meet a specific threshold to be taxed by Nevada.

Retailers must do $100,000 in taxable sales, or 200 or more transactions in Nevada. They must register with the Nevada Taxation Department on the first day of the month that begins at least 30 days after the retailer meets that threshold.

The Department of Taxation won't estimate how much money this new tax revenue stream will mean to state coffers. But what it means to local retailers, Paul believes, is they have to step up their game to make shopping an experience, with great customer service.

“And so we want you to come in, feel the product, touch it, try it on. And just have fun with it. It is an experience you can't have when you are buying it online,” says Paul.

While the state won’t say how much this new tax means to Nevada, published reports estimated the new tax on E-Commerce will bring in between $17,000,000 and $29,000,000 annually.

Copyright KOLO-TV 2019