TOPEKA, Kan. (KSNT) – People searched the internet Monday for the best deals on the biggest online shopping day of the year, but customers might be paying more in taxes.
For the first time in Kansas on Cyber Monday, out-of-state retailers are having to collect sales tax.
The 2018 Supreme Court South Dakota v. Wayfair decision lets states collect taxes from out-of-state sales. So the Kansas Department of Revenue made the requirement this year.
“Out-of-state retailers had a competitive advantage and the Wayfair decision adjusts that, and in large part, leveled the playing field,” said Revenue Secretary Mark Burghart.
The department has seen nearly 4,000 new companies register to sell to Kansans since the decision. That includes about 1,600 companies since August.
Once they register, the company has to collect the 6.5 percent state sales tax plus any additional local taxes.
Burghart said the department is already seeing results from more taxes being paid. The November monthly revenue is up 15 percent from this time last year.
“It’s just collecting tax that is lawfully due. This isn’t a new tax, it’s been on the books since 1937, it’s just a question of how it’s collected,” he said.
Burghart said the change could net Kansas 20 to 40 million dollars more in sales tax revenue per year.
He also said he’s hoping for good numbers because of high projections from national economists for the holiday shopping season.