Online taxation article :(

[Cat]

http://www.washingtonpost.com/wp-dyn/articles/A31210-2003Feb5.html

Some of the nation's largest retailers this week started voluntarily collecting taxes on all of their online sales.

The companies are among the first in the nation to collect sales taxes from online shoppers across the country, not just shoppers who live in the states where the companies maintain actual stores or distribution centers.

In return, 38 states and the District of Columbia agreed to absolve the retailers from any liability for taxes not previously collected on Internet sales.

Arizona, California and South Carolina are not parties to the deal, and four other states have not yet signed on. Most of the retailers involved have physical locations in the 45 states that levy sales taxes.

Atlanta attorney John Coalson, who represented the retailers in the negotiations, declined to say which ones accepted the plan, saying that revealing their names would let the states that rejected the deal chase down the companies for back taxes.

 

[tm37]

Considering that the constitution forbids tariffs betwwen the states I really don't see how states can charge tax on something I purchase in a different state.

Most states do have a budget deficit and are looking to find a way to raise money.

What is going to happen is that sompanies will start setting up shop on indian reservations😉

 

[Jeraden]

If you ask me, this is going to completely kill a lot of internet commerce. Shipping + tax = large overhead.

 

[Mutilator]

They've been talking about this a lot on the local news here in NC. Basically the way they see it is you're not doing business with a company in another state... they're doing business with you in your state. No more having to have a physical location. And yes shipping + tax will probably cause problems for a lot of those e-businesses on the edge.
What's next? Speeding tickets for surfing too fast on the internet? 😛

 

[StageLeft]

Not surprised but yes indeed it will definitely hurt internet sales. As it is almost anything I buy on the net I can get locally anyway, but I save taxes and then have to pay shipping so often the prices are similar.

 

[Nitemare]

Originally posted by: Mutilator
They've been talking about this a lot on the local news here in NC. Basically the way they see it is you're not doing business with a company in another state... they're doing business with you in your state. No more having to have a physical location. And yes shipping + tax will probably cause problems for a lot of those e-businesses on the edge.
What's next? Speeding tickets for surfing too fast on the internet? 😛

North Carolina has a spot on their state return in which you can put down anything you purchased online, so you can pay taxes on it....

Good thing I have never bought anything online...😀

 

[Turkey22]

Yeah good thing none of us have bought things online...