Tax-free Internet shopping jeopardized by bill

Apr 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: Germany still has some way to go to 'smart factories'

0 shares

Related Stories

White House backs Internet sales tax bill

Apr 22, 2013

The White House Monday backed a Senate bill to force online retailers like Amazon and eBay to collect state and local sales taxes, hoping to end a cost disadvantage hampering bricks and mortar businesses.

Amazon says tax delay will save jobs

Sep 13, 2011

Amazon on Monday said legislation allowing online retailers to delay for one year the collection of sales tax in California would save jobs and provide time for a national law to be drawn up.

Calif. lawmakers approve Amazon tax compromise

Sep 10, 2011

(AP) -- Lawmakers on Friday sent Gov. Jerry Brown a compromise bill that delays California's effort to force online retailers such as Amazon.com to collect the state's sales taxes while retailers lobby Congress for national ...

Recommended for you

Germany still has some way to go to 'smart factories'

9 hours ago

Collaborative robots and intelligent machinery may have wowed the crowds at this year's Hannover Messe, but experts see German industry as having some way to go towards incorporating them on factory floors ...

Taiwan factory workers win $18 mn over cancer deaths

Apr 17, 2015

Workers from a factory in Taiwan which leeched toxic chemicals they say resulted in 200 deaths from cancer and more than 1,000 other cases of the disease won a Tw$564.45 million ($18 million) payout from US electronics company ...

Court monitor: Apple antitrust cooperation has 'declined'

Apr 17, 2015

Apple Inc.'s cooperation with efforts to improve its compliance with antitrust laws after a federal judge concluded it colluded with electronic book publishers to raise prices five years ago took on an "adversarial tone" ...

User comments : 2

Adjust slider to filter visible comments by rank

Display comments: newest first

dogbert
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.
tjcoop3
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.

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.