Tax-free Internet shopping jeopardized by bill

April 23, 2013 by Stephen Ohlemacher

Tax-free shopping on the Internet could be in jeopardy under a bill making its way through the Senate.

The bill would empower states to require online retailers to collect state and local for purchases made over the Internet. The sales taxes would be sent to the states where a shopper lives.

Under current law, states can only require stores to collect sales taxes if the store has a physical presence in the state. As a result, many online sales are essentially tax-free, giving a big advantage over brick-and-mortar stores.

The Senate voted 74 to 20 Monday to take up the bill. If that level of support continues, the Senate could pass the bill as early as this week.

Explore further: White House backs Internet sales tax bill


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2.3 / 5 (3) Apr 23, 2013
A federal law requiring anyone selling a product or service on the Internet to collect sales taxes on out of state sales will severely hamper and in many or most cases, eliminate, small operations. Large companies can afford the staff to maintain up to date databases of every state, county or parish and city sales tax.

Consider also the companies which intentionally locate in states without sales taxes being forced to collect taxes for consumers in other states. Those states who are business friendly may lose companies who no longer find their tax free status beneficial.
3 / 5 (2) Apr 25, 2013
This is so obviously a corporate/government collusion. Small businesses will be unable to compete since every locale has different forms, laws ect. pertaining to the collection of taxes.
Sucks big time and I foresee an underground kind of internet economy developing.
People will find ways around this and I will be there to purchase when they do.
Death to government tyranny and it's systems that would continue to place the boot upon the heads of those whom they serve.

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