U.S. Ecommerce To Be Broadly Taxed?
fl!ptop writes "ZDnet has a story about U.S. Senators proposing sweeping changes to how Americans are taxed for online purchases. As proposed, businesses would be required to collect sales taxes and send them to the state the purchase was shipped to. As a small business owner that primarily sells via ecommerce, I am shuddering at the prospect of having to deal with government sales tax forms and coupon books for 30 or more states. Will I have to register with each state's tax department? As an ecommerce Web developer, I'm also wondering what implications this will have on maintaining code that calculates sales taxes, expecially in states like Ohio where they differ by county and municipality."
NH has no sales tax :-)
Actually, there is a big reason. Best Buy and CompUSA have a physical presence in almost every single state and therefor must collect taxes for the states they exist in. Amazon only has a physical presence in 4 states (and they DO collect taxes from those 4 states). Best Buy and CompUSA a free to kill their physical stores and go with the online-only distribution model like Amazon.com, but they CHOOSE not too. Amazon.com most certainly should be exempt from paying sales taxes in states they are not even present in.
I think, therefore I doh.