Internet Tax Debate Gets Stickier..

[IGBT]

Text

Before the states can impose sales taxes on goods purchased at businesses that are not physically located in their jurisdictions, Congress must to pass a law to reverse a Supreme Court ruling that linked the right to collect taxes to physical location.

Having said that, let me repeat the basic message of last week's column. The incentive to impose sales tax on goods sold over the Internet is a powerful one that will play well in Congress. All of the forces at work, particularly the need for states to find new ways to raise money to make up for cuts in federal support and funding, are going to make it politically palatable for Congress to pass legislation that allows the states to enact such taxes.

 

[mugs]

I think most states already charge a "use tax" on items purchased via mail/internet, the problem is people don't pay it.

 

[Anubis]

Originally posted by: mugs
I think most states already charge a "use tax" on items purchased via mail/internet, the problem is people don't pay it.

mail yes internet no

only time you currently pay tax on stuff you get from the net is when the compant is located or has a warehouse in your state

 

[mugs]

Originally posted by: Anubis

Originally posted by: mugs
I think most states already charge a "use tax" on items purchased via mail/internet, the problem is people don't pay it.

mail yes internet no

only time you currently pay tax on stuff you get from the net is when the compant is located or has a warehouse in your state

No, the Internet is the same as mail-order in this respect. You're correct that the company only COLLECTS sales tax if they have a location in your state, but you're still supposed to pay the use tax with your state income taxes.

 

[RMSistight]

Originally posted by: IGBT
Text

Before the states can impose sales taxes on goods purchased at businesses that are not physically located in their jurisdictions, Congress must to pass a law to reverse a Supreme Court ruling that linked the right to collect taxes to physical location.

Having said that, let me repeat the basic message of last week's column. The incentive to impose sales tax on goods sold over the Internet is a powerful one that will play well in Congress. All of the forces at work, particularly the need for states to find new ways to raise money to make up for cuts in federal support and funding, are going to make it politically palatable for Congress to pass legislation that allows the states to enact such taxes.

Unless the supreme court decision is overturned, I won't pay tax if I purchased something out of state. If it is overturned, then I'll gladly pay it.

 

[dullard]

Originally posted by: mugs
I think most states already charge a "use tax" on items purchased via mail/internet, the problem is people don't pay it.

Correct. In all states that I know of with a sales tax, you are required by law to pay the sales tax on internet purchases. The courts say that the business cannot be forced to collect it for you. That doesn't mean you don't owe it legally. Many of those states have a small section on their yearly income taxes for the use tax. Others have separate forms.

 

[IGBT]

..doesn't NewYork collect tax on internet tobacco sales??