States Ask E-tailers to Pay Sales Tax
By George Anderson
“This fall,” reports The Associated Press, “13 states will start encouraging — though not demanding — that online businesses collect sales taxes just as Main Street stores are required to do.”
The decision by the states came out of an initiative known as the Streamlined Sales Tax Project, developed by state government officials and business leaders to come up with a unified set of definitions and tax rules for Internet sales.
To be included in the project, new states need to change tax laws to comply with those in place at the original 13. Those are Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Nebraska, New Jersey, North Carolina, North Dakota, Oklahoma, South Dakota and West Virginia.
Arkansas, Ohio, Tennessee, Utah and Wyoming are expected to join the effort.
Companies are being encouraged to participate, the AP explains, by states taking a carrot and stick approach. “If businesses register and start collecting taxes this year,
they’re given a yearlong amnesty from the possibility that states may seek back taxes for online purchases.”
Moderator’s Comment: What impact will have states collecting tax on Internet sales have on the business?
George Anderson – Moderator