Monday 11th of December 2017 12:22:49 AM

  • Internet Sales Tax Approved By Senate

    Wednesday 08th of May 2013 3:04:50 PM

    Today, the US senate approved a bill that would permit states to charge sales taxes on internet purchases. The vote was won by 69 votes. It needed only 51 votes for final approval.

    The current law states that in order to collect sales taxes for internet purchases the company selling goods would have had to have a physical existence in the state.  For example, stores like Wal-Mart or Target would be able to collect sales tax for online sales but EBay and Amazon was not required to unless they had an office in that state.

    This new law would also affect products sold via radio ads, tv ads, and catalogs. Shoppers would be required to pay the sales tax of the state they reside in.

    David French, senior VP of government relations for the National Retail Federation said , “It’s putting pressure on the brick-and-mortar competitors and it’s putting pressure on state and local sales tax revenues,” and “It’s time for Congress to create a level playing field so that all retailers are treated fairly.”

    It was reported that states lost $238 billion in 2012 due to not being able to collect out-of-state sales taxes.  Of the $238 billion lost approximately $11.4 billion was lost from sales made on the internet. The rest is from sales made through catalogs, mail orders and telephone sales.

    How will this affect you? Comments welcome….

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