States Push for Online Sales Tax Collection

[Shadow]

States Push Harder for Online Sales Tax Collection

Tax-free shopping is under threat for many online shoppers as states facing widening budget gaps increasingly pressure Amazon.com Inc. and other Internet retailers to start collecting sales taxes from their residents.

Billions of dollars are at stake as a growing number of states look for ways to generate more revenue without violating a 1992 U.S. Supreme Court ruling that prohibits a state from forcing businesses to collect sales taxes unless the business has a physical presence, such as a store, in that state.

States are trying to get around that restriction by passing laws that broaden the definition of a physical presence. Retailers are resisting being deputized as tax collectors.

States Push Harder for Online Sales Tax Collection

 

[Mr. H.]

Illinois just did this. Amazon left.

 

[Mr. H.]

After Illinois passed its law, Amazon and Overstock said they would dump their affiliates in that state - Amazon on April 15, and Overstock on May 1. Online retailers earlier dropped affiliates in several states that are now requiring them to collect taxes. Rebecca Madigan, executive director of California-based Performance Marketing Association, said those affiliates then saw 25 percent to 30 percent declines in revenue.

According to Madigan, there are 200,000 Internet retail affiliates across the country, some of which are fighting the legislation in their own ways.

For this to work, I think all states are going to have to enact such legislation.

 

[editec]

Speaking as somebody who runs an organization that gets some revenue online, I would not object to a national, or even an international sales tax imposed on internet sales.

What I would object to is having to become an agent for every nation, state, province and cowstop with a government on earth.

If they're going to tax internet sales, they'd best find a way to have one centralized system of taxation and reporting.

Because otherwise the administration of that tax makes it pretty much impossible for all but the largest retailers to cope with it.

 

[JBeukema]

Maybe the states should ask themselves what they can do for their own economies so I don' have to order online? Maybe they should ask why I don't want to buy in their jurisdiction in the first place...

 

[ogibillm]

Maybe the states should ask themselves what they can do for their own economies so I don' have to order online? Maybe they should ask why I don't want to buy in their jurisdiction in the first place...

you don't have to order online. you choose to. likely to get that nice 5-6% discount you get by not paying taxes. and then you ship your dollars out of your state and community causing further problems to your local economy.

and don't get me wrong - i do it too. but what exactly is it you expect the state to do that's going to make a brick and mortar store price competitive with an online retailer unless it levels the playing field by requiring the online shop to collect taxes?

 

[Sallow]

It's about time. The internet was not created for free. It was created, mainly, with tax payer dollars.

Pay back time is long due.

 

[JBeukema]

Maybe the states should ask themselves what they can do for their own economies so I don' have to order online? Maybe they should ask why I don't want to buy in their jurisdiction in the first place...

you don't have to order online. you choose to. likely to get that nice 5-6% discount you get by not paying taxes. and then you ship your dollars out of your state and community causing further problems to your local economy.

and don't get me wrong - i do it too. but what exactly is it you expect the state to do that's going to make a brick and mortar store price competitive with an online retailer unless it levels the playing field by requiring the online shop to collect taxes?

It wasn't a problem before the state and city kept jacking up the tax rate

If we hadn't beat the last hike attempt, we'd have the second highest in the nation

Now when people want to buy a car, they go of town to save a few hundred bucks

 

[ogibillm]

It wasn't a problem before the state and city kept jacking up the tax rate

If we hadn't beat the last hike attempt, we'd have the second highest in the nation

Now when people want to buy a car, they go of town to save a few hundred bucks

you don't suppose the state and city might be able to lower those rates if online retailers were paying their part, do you?

also, i don't know of any state that allows people to dodge sales tax - in fact i just bought a car in kansas and had to pay the sales tax in missouri based on where i was registering the car.

if your state is different they're screwing up big time.

 

[Rozman]

It's about time. The internet was not created for free. It was created, mainly, with tax payer dollars.

Pay back time is long due.

We just need to tax the shit out of anything that isn't nailed down.It's just never enough with
Liberal dirt bags.Tax....Tax...Tax.....and then tax some more.

It really is that simple when it comes to Liberals.