05-05-2013, 01:32 PM
quote:
Originally posted by kalakoa
The US Senate is fast-tracking a bill that would allow (or perhaps "require") States to levy sales tax on out-of-state purchases (eg, an "Amazon Tax").
Rest assured, our governor will not leave that money "on the table", so we'll get a matching State bill as soon as the Feds have cleared up the "interstate commerce" issue.
I wonder where this "extra" money will go, considering that we'll have additional local tax increases in the meanwhile?
Well, not quite. The bill would require internet retailers to collect the same amount of sales taxes that customers would currently pay if they bought their item at a "brick and morter" location in their state. The E-tailer must then pass those funds on to the buyer's state government. It aims to eliminate one advantage online sellers have over local merchants and allow states to collect revenues due them under existing laws. In theory, we're all supposed to directly pay our state sales taxes for any online purchases, but hardly anyone does, so this is how the states hope to ensure compliance.