Quote:
Originally Posted by LovesMacs
I wonder if physical stores will give states more of an incentive to pursue the collection of sales tax on online orders?
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Your terminology is off: states don't need incentives to go after their citizens' money.
The way online sales work, because of federal law and precedent, and constitutional issues, is that companies with a physical presence in the state (Amazon's warehouses, for example, or B&N stores) are required to collect sales tax from consumers on behalf of the state.
Those without a physical presence (Amazon in states where they don't have warehouses) have no obligation whatsoever to act as tax collectors for the state. Consumers in those states with a "Use Tax" are required by law to calculate that tax and pay it with their state income tax return. The onus is on the state resident, not the company.
There is a project before Congress to establish a uniform nationwide internet sales tax to be collected by retailers on behalf of the *federal* government. Amazon is on record as favoring it. It has gone nowhere and it will go nowhere.
Expect no change anytime soon.