Jun 20, 2012

Change Is Gonna Come: Online Taxes

I hope you saved your lunch money because a change gonna come with Amazon and other online retailers.
Amazon taxes are not new taxes. They merely address who is responsible for collecting tax that’s always been due on tangible personal property sales. Most states–45–have sales tax. If you buy online and have items shipped into one of those states you are liable for use tax, the mirror image of sales tax.
Since use tax is tough to collect, the battle is over getting online merchants to collect it. Soon we’ll all be paying it. In California, Amazon’s compromise exempts online retailers from collecting California sales or use tax until September 15, 2012 if the feds do not pass a federal online tax measure in the meantime.
Other Amazon agreements include Texas, July 2012; Virginia, September 2013; Indiana, January 2014; Nevada, January 2014; Tennessee, January 2014; and South Carolina, January 2016. Meanwhile, three federal bills are pending.
The Main Street Fairness Act would impose national tax standards but allow states abiding by the Streamlined Sales and Use Tax Agreement to force Internet sellers to collect tax. Other bills include the Marketplace Fairness Act and the Marketplace Equity Act.

Put in simplier words: Buying goods on the internet is about to get a whole lot of higher!!!

1 comment:

Online Taxes said...

This post is becoming more and more relevant as talk of an internet sales tax is stirring up again.

Until this gets settled one way or another, I see online taxes being a hot debate for a long time. Keep up the great blogging!