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The halcyon days of tax-free Internet shopping will, if Rep. Bill Delahunt gets his way, soon be coming to an abrupt end.
Delahunt, a Massachusetts Democrat, introduced a bill on Thursday that would rewrite the ground rules for Internet and mail order sales by eliminating the option for many Americans to shop over the Internet without paying state sales taxes.
At the moment, Americans who shop over the Internet from out-of-state vendors usually aren't required to pay sales taxes. Californians buying books from Amazon.com or cameras from Manhattan's B&H Photo, for example, won't be required to cough up the sales taxes that they would if shopping at a local mall.
So just say there are 51 tax districts in the US, make merchants collect that tax and stop putting local merchants at a disadvantage and taking money out of the state coffers.
Shipping costs are already a disincentive to purchasing online.
Any motivation for states to hold down sales tax rates would be removed if this law passes
Now go check your email for a You're fired letter from the various affiliate programs
why is there always a big push to get internet sales tax but no discussion on mail/phone order sales tax?
(1) States should be encouraged to simplify their sales and use tax systems.
(2) As a matter of economic policy and basic fairness, similar sales transactions should be treated equally, without regard to the manner in which sales are transacted, whether in person, through the mail, over the telephone, on the Internet, or by other means.
(3) Congress may facilitate such equal taxation consistent with the United States Supreme Court's decision in Quill Corp. v. North Dakota.
(4)States that voluntarily and adequately simplify their tax systems should be authorized to correct the present inequities in taxation through requiring sellers to collect taxes on sales of goods or services delivered in-state, without regard to the location of the seller.
(5) The States have experience, expertise, and a vital interest in the collection of sales and use taxes, and thus should take the lead in developing and implementing sales and use tax collection systems that are fair, efficient, and non-discriminatory in their application and that will simplify the process for both sellers and buyers.
(6) Online consumer privacy is of paramount importance to the growth of electronic commerce and must be protected.
Each Member State under the Streamlined Sales and Use Tax Agreement is authorized, subject to the requirements of this section, to require all sellers not qualifying for the small seller exception to collect and remit sales and use taxes with respect to remote sales sourced to that Member State under the Agreement.
The following necessary operational aspects of the Agreement have been implemented by the Governing Board... Implementation of an online multistate registration system.
Each Member State has met the requirements to provide and maintain the databases and the taxability matrix
(1) A centralized, one-stop, multistate registration system that a seller may elect to use
(2) Uniform definitions of products and product-based exemptions
You buy a backpacking tent over the Internet from a company in Wyoming. The seller ships the tent to your home and does not charge you California tax. You owe use tax as soon as you use or store the tent in California.
The feds should just keep their fingers out of this.
@ergophobe - I believe existing law is actually that online sellers are not required to collect sales taxes unless they have a presence in a state.
laws are unenforceable by flaw, but left unenforceable by design
who can become the least competitive