CRC021 ONLINE SALES TAX COLLECTION LEVELS THE PLAYING FIELD FOR BRICKS & STICKS
By Jason Ricks
For years remote online sellers without a physical presence in a state have enjoyed selling their wares tax-free! This was because of Quill Corp. vs. North Dakota, which has been in existence for over 26 years. Well before the internet era and online shopping. This outdated ruling allowed remote sellers that didn’t have a “physical presence” within that state to sell goods without taxation.
This all changed with the landmark South Dakota vs. Wayfair, Inc. decision in June of last year. This new ruling requires remote online sellers to collect sales taxes at the time of sale after they reach a sales threshold (or, “nexus”) of $100,000 in online revenue or a total of 200 transactions, during a calendar year.
The new ruling is a massive win for marketplace-fairness. Former CEO of Kimco, David Henry was quoted,” A level playing field is so important for brick and mortar, and communities. Sales tax helps states and local communities and Little Leagues, and they were all losing tons of revenue before the Supreme Court’s decision.”
Fourteen months from the ruling and state have not wasted any time. As of May 2019, 42 of the 45 states with sales tax legislation require collection, and the majority of these new laws resemble the South Dakota ruling.
Now, 35 states are starting to pursue legislation for “marketplace facilitators” to the list of sales taxpayers. A marketplace facilitator is defined as a marketplace that contracts with third-party sellers to promote their sale of physical property, digital goods, and service through the marketplace. A prime example of a marketplace facilitator is Amazon. Amazon and the other large national retailers saw this coming, and have been collecting sale taxes. However, they haven’t been collecting for the majority of their marketplace sellers on their platform. We know from Jeff Bezos’ annual shareholder letter that 58% of all transactions on their platform come from third-party sellers! 58% – that’s a lot of lost sales tax and a significant advantage over brick and mortar. According to Marketpath, a software-content-management firm states stand to collect $33 Billion in new sales tax revenue once they fully adopt the Supreme Court’s Ruling. South Dakota says it’s losing between $21-50 million per year in taxation due to online sales.
As a consumer, I don’t love the idea of paying taxes, but as a Shopping Center landlord that leases to small “Mom & Pop” and national tenant’s this is great for leveling the playing field.
About the Author: Jason Ricks, Principal with Concordia Equity Partners LLC
Mr. Ricks is a native Texan, professional real estate investor, certified commercial investment member (CCIM), and real estate entrepreneur whose primary focus is on acquisitions, leasing, construction, and development. Mr. Ricks’ background in retail leasing and asset management make him an invaluable member of Concordia’s team for developing strategy to unlock the value of a property. Mr. Ricks also has extensive experience and familiarity with south and southwestern US markets. Mr. Ricks’ most recent experience is with AMLI Residential as the Vice President for Retail Asset Management where he established and has led the mixed-used Retail Asset Management team working on premier properties worth hundreds of millions across the country. Prior to that, he served as an Asset Manager for BH Properties where he oversaw a 2.2 million square foot value add retail portfolio throughout Texas and Oklahoma. Mr. Ricks broke into the commercial real estate business as a Shopping Center broker for Tarantino Properties. He received his BS in Business Management from Oklahoma State University, where he was a Team Captain for the Oklahoma State Football Team (The Cowboys). Mr. Ricks is a member of the International Shopping Counsel of Centers (ICSC). Most recently, he was featured in the #1 Amazon bestselling book: DESIRE, DISCIPLINE & DETERMINATION (2019).
Concordia Realty Corporation has been successfully connecting sound economics with experience in real estate for more than 28 years. We are a premier private real estate investment and management firm that specializes in Retail Real Estate, including Shopping Centers and Single-Tenant Net-Lease Detail/Medical (“Medtail”) properties. Our wide range of experience has uniquely positioned us to redevelop and repurpose properties that are experiencing disruptions related to technology and merchandising. This experience has built a skill-set that helps to add value to all of our real estate ventures.
For more information on Concordia Equity Partners, contact us here: 
DISCLOSURES, LEGAL AND TAX COUNSEL: Concordia Realty Corporation, Concordia Equity Partners LLC, Concordia Realty Management,Inc. (collectively “Concordia Realty”) and their affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction or undertaking. Concordia Realty highly encourages individuals and investors to seek the counsel of a qualified attorney as well as seek the counsel of a tax professional or Certified Public Accountant (CPA) to determine if there are any potential tax liabilities or consequences as the result of anything contained herein. NO GUARANTEE: All users of this website should understand there are NO GUARANTEES of any success, outcome or profitability of any transaction or undertaking, expressed or implied by Concordia Realty or any of its members, shareholders, officers or affiliates and will NOT be liable for any financial or other losses or damages incurred as a result of any undertaking. Go HERE to view complete DISCLOSURES.
Who We Are
For nearly 30 years, Concordia Realty has endeavored to merchandise our properties with financially stable, engaging merchants and service providers targeted to meet the needs of the trade area.
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Concordia’s Adam Carswell made a recent appearance on the Capital Hacking podcast with Josh McCallen and Erik Cabral.
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Adam Carswell is the Director of Media and Investor Relations for Concordia and also assists with underwriting new acquisitions. He also currently lives in St. John’s, Newfoundland an island off Canada’s Atlantic coast. Adam hosts two podcasts: Dream Chasers and the Liberland Show and with creating a professional development program on the side. Adam met Josh McCallen, a co-host of the Capital Hacking podcast while attending the Real Estate Guys How To Win Funds and Influence People event with Concordia.
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Book a meeting NOW or drop by our booth to say hello and grab some swag. Adam Carswell of Concordia Realty will also be on hand to answer questions about Liberland and his Liberland Show Podcast.
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Concordia Realty will host a panel discussion on investing Real Estate and Gold with Michael Flight, Buck Joffrey (Real Estate, Bitcoin); Dana Samuelson (Gold); Lane Kawaoka (Real Estate); Rich Checkan (Gold).
FreedomFest panel on Friday, July 19, 2019 at 3:10pm in the Chablis Room Paris Hotel Las Vegas
FreedomFest | The Wild West | July 17 – 20, 2019 | Paris Resort, Las Vegas
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