Quote:
Originally Posted by Ralph Sir Edward
Some states don't have a sales tax. They'd end up being a tax collector for other states, at no pay...
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Not exactly. The retailer only collects taxes in states that have a sales tax. So it doesn't matter whether a state has a sales tax or not. I.e., an Oregon retailer would have to collect sales tax on sales made in California, just like an Illinois retailer would. The tax status of the home state doesn't matter for the collecting state.
Oregon residents would continue to owe no sales tax, regardless of whether they bought the product from an in-state retailer or an internet retailer based in Calif. Cali residents would continue to pay the same sales tax regardless of whether they bought a product in Cali or from an internet retailer in Ore.
It's not entirely for no pay - my state (and I would assume all states) permits retailers to retain a small "collection allowance" (.83%, in my state) to defray the expense of collecting the taxes.