ergophobe - 4:56 pm on Jun 30, 2011 (gmt 0)
The traditional principle for taxation was based on Physical Presence. If the retailer did not have a physical presence then states could not collect the sales tax. This law changes all that. This is not an existing tax. It is a NEW tax, a tax on the regular person, you and me.
MB - this is just 100% untrue in California. This just changes the burden. California residents have always been required to pay use tax on items purchased out of state, but 99% never do unless it's a vehicle that has to get registered.
The reporting burden was on the consumer. Now it's on the merchant.
The current rules that depend on the consumer for reporting effectively are anti-business and anti-local because they unfairly penalize small and large local merchants with a physical presence.
My issue is that I think a state-by-state solution is ridiculous and we just need a national solution. The law proposed in the US Senate a year or so back was actually sensible, but didn't pass. It required online retailers to collect sales tax on items shipped to states that signed on to an agreement to simplify tax structures and keep free and up-to-date online databases of their tax zones.
It was an effort to compromise and rationalize the system and base it on the residence of the buyer, not the affiliate.
Of course, it was roundly attacked on WebmasterWorld as being socialist, anti-business and a "new tax". :-(