The Supreme Court Might Ruin Dropshipping!

what's up fellow options in today's video I'm gonna be talking about a Supreme Court case that could negatively affect us as eBay drop shippers so this Supreme Court case has to deal with sales tax so first we have to have a little history lesson to catch you guys up so you have a better understanding of what this case is about so in 1992 there was a Supreme Court case called quill versus North Dakota and in that case the Supreme Court and for those of you who don't know the Supreme Court is the highest court in the United States their responsibilities along with all the other federal courts is to interpret our Constitution and since that Constitution is the ultimate law in the United States then whatever the Supreme Court says is the law the Supreme Court ruled in this case in 1992 that a state can only collect sales tax from a company if the company has a physical presence in the state so for instance myself I'm located in New York that's where I'm incorporated that's where my business is located so none of the other states besides New York are allowed to collect sales tax from me fast forward to last year 2017 and there are a lot of states who are just annoyed by this law they think that in the age of the internet everyone is basically present in every state when they sell online so South Dakota passed a law that said that anyone who does a hundred thousand dollars worth of sales within their state has to pay the same state sales tax now big companies like Wayfair and overstock they're opposed to this because they don't have physical locations inside many of the states and they would have to pay a lot more sales tax to these states it would also affect us as consumers because we're the ones who are actually paying the sales tax to the companies who then pass it on to the state now in the short run this probably won't have an impact on us because a lot of the laws that are looking to be enforced really have to do with high-volume sellers so for instance law in South Dakota says that anyone who does a hundred thousand dollars worth of sales in that state has to pay tax and most of us dropshippers aren't doing that kind of volume within one state so this probably won't have an impact on us in the short run but it could open up the door if the Supreme Court rules that these states are allowed to collect sales tax then what's to stop them from collecting sales tax from us little guys as well so this is important that we pay attention to us ultimately what would happen was is that we're gonna have to collect sales tax from our buyers and then we're gonna have to pass that money along to each state that's a very tedious process for us because we're really small companies we would have to have someone who organizes okay this sales tax goes to this state this one we have to do that 50 times over so if we did have to do that it would be a huge burden on us so the Supreme Court just stated that they would hear this case so there really is no real developments on it we're gonna have to wait and see what happens so I will be updating you guys as things develop with this case if you want to make sure you get those videos please subscribe to our Channel and really help us out if you like this video please give it a thumbs up and thanks guys for watching