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FIB - Scams 101 - Ye Olde Archives
Posted By: pete In Response To: Re: You're still supposed to pay (Bluto Samartino)
Saturday, 14 January 2006, at 4:52 a.m.
>Actually, when it's the buyers responsibility they call it a Use Tax. I'd bet that if you do a google on use tax and your state you will find one.
And there is article from the Jan 14 edition of Business Week -
Subj: A Web of New Taxes on Line Sales.
The days of avoiding sales tax on the stuff you buy online may be numbered. Salivating over booming Web purchases - $30 billion this holiday season, by some measures - states are taking the first steps toward requiring retailers to collect taxes on Internet and mail-order sales. And 2006 will see a bipartisian push in Congress to O.K. the levies.
Since 2000 nearly all of the 45 states charging sales taxes have worked together to establish a simplified and relatively uniform collection system. The project was started after Congress barred states from taxing Internet access and began pressing govenors to curb taxation of Internet-based sales. The Supreme Court has prohibited states from requiring out-of-state sellers to collect the taxes, largely because of a morass of multiple states and local levies. Now, 13 states including Michigan and New Jersey, have adopted a steamlined system aimed at satisfying the court's concerns. Six other states have started incorporating the changes into their own laws. Senators Mike Enzi (R-Wyo) and Bryon Dorgan (D-N.D.) are asking Congress to give those states the go-ahead to collect sales tax from e-tailers.
Not surprisingly, bricks and clicks retailers back the change (Many voluntarily collect taxes on their online sales). But expect a fight in Congress, with Web heavyweights such as eBay and AOL leading the charge. They'll have the support on anti-tax Republicans in the house as well as the White House. But with California and others likely to sign on to the simplification plan, pressure to approve the changes is building.
One holiday season soon, don't be surprised to see state sales tax included when you "click your order." Howard Gleckman
P.S. Should this pass the effects will be obvious to all online sellers...You will have to collect AND remit the taxes to all state agancies. Contact your leglislators and let them know your feeling before it is too late!
Inexpensive Accounting Software for Small Businesses
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