Tulsa Retailers Encouraged By Colorado Internet Sales Tax Ruling

A Supreme Court decision puts more teeth into an Oklahoma law involving internet sales tax.

A lot of us shop online now, and the law requires online retailers to notify customers and the state how much tax is due.

Right now, online sales tax, in many cases, is on the honor system and few people pay it; but, after the first of the year, buyers will get more reminders that taxes are due.

Despite the shift toward online sales, Christmas sales are happening at the Peace of Mind Book Store.

The store on Cherry Street opened in 1975, and they're competing with Amazon by selling what you can't get online.

"Trying to market the experience of coming to a bookstore - coming in, feeling books, smelling the smells, versus shopping, because, you can shop anywhere but you can't experience a bookstore if you don't come to a bookstore," Michele Johnson said.

That experience comes with the added cost of sales tax.

The same tax is due for online sales, but, because it is not collected online most people never pay it. The state estimates it's at least a $200 million loss in taxes due each year.

11/28/2016 Related Story: State Struggles To Enforce Online Sales Tax

Mike Neal with the Tulsa Chamber of Commerce said, "By the loss of these revenues it's making it difficult for them to provide services to the citizens and the taxpayers."

The Tulsa Chamber supports a sales tax for online purchases to support government and local businesses trying to compete.

A decision by the Supreme Court upholding a notification law in Colorado is another step towards leveling the field.

State Representative Chad Caldwell released a statement praising the ruling, saying:

“I am pleased with the Supreme Court’s decision. The intent of the law is to level the playing field for Oklahoma’s small businesses. The court’s refusal to interfere in a similar state law removes a cloud of worry and will help Oklahoma move toward the lawful collection of dollars to support core state services such as health care, education, roads and bridges and public safety.”

Johnson's bookstore and the connected gift shop don't sell anything online, but the online competitors are a big concern.

"I think all businesses have to think about it, bookstores in particular because of Amazon," she said.

The new law takes effect in January, but the impact won't be clear for a full year when taxes to the state come due.