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States Push to Collect Online Sales Tax

Posted by Zonk on from the but-i-like-my-bulk-cheerios-on-the-cheap dept.

Carl Bialik from the WSJ writes "On Saturday, 18 states will implement the Streamlined Sales Tax Project, which will make it easier to collect local and state sales taxes on purchases made over the Internet while offering amnesty on uncollected taxes. In their longstanding opposition to collect sales tax, many online retailers 'have cited a 1992 Supreme Court ruling that said that it would be too onerous for e-tailers to calculate all the permutations of differing state and local tax rates,' the Wall Street Journal reports. 'One goal of the project was to remove the ruling as a key defense for online merchants.' Is your state involved? 'The states that have signed on are Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Nebraska, New Jersey, North Carolina, North Dakota, Oklahoma, South Dakota and West Virginia. Five more -- Arkansas, Ohio, Tennessee, Utah and Wyoming -- are in the process of finalizing the requirements needed to join, while Washington, Texas and Nevada are in earlier stages.'"

2 of 395 comments (clear)

  1. Re:California charges it by networkBoy · · Score: 0, Flamebait

    Not according to my paperwork from the SBA and FTB.
    I'm not required to collect sales tax on purchases, nor am I required to make the customer pay them. If the item sold is subject to use tax I have to not that on the reciept, not the other way around.
    -nB

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  2. Re:Wait just a darned minute by Snar+Bloot · · Score: 0, Flamebait
    I'm talking about locally owned businesses that make up the "main street" of many communities in my state. Not Walmart.

    However, you have an interesting point. The e-bay seller part of it. How many e-Bay sellers do you know that have a sales tax license? If they're truly a business, they should. Why should they get off not having to collect sales tax (assuming their state requires it)?

    I'm not talking about the casual, occasional personal sale here. I'm talking about professional e-bayers. Each state might have their own laws on this, but in my state you can have a "lemonade stand" or a "garage sale" without getting a sales tax license, and collecting and remitting the tax to the state. But if you meet some level of criteria, at some point you must.

    As more sales move from brick-and-mortar to pick-and-click stores, this will affect the tax base.