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by camz 5359 days ago
As a CPA with years of experience in specialized state and local tax issues. I can tell you that sales and use tax is very complex and burdensome. But, at the same time internet retailers have taken advantage of the the law's inability to keep up with new business models, so internet retailers have had an unfair advantage over brick and mortar companies.

Just giving the issue perspective from both sides.

2 comments

What's the "unfair advantage"? If I run a physical store in my town and someone from out of state drives in and buys something, I'm not expected to make sure the appropriate sales tax on that item gets to that person's state or municipal government. I'm only responsible for whatever sales taxes (if any) exist where I physically am.

On the other hand, online merchants with physical stores already have to charge for sales taxes if their online customers are within those jurisdictions.

Requiring online merchants to collect the correct sales taxes for every state and town is either a stupid attempt to increase revenue or a straight attempt to hobble online sales on behalf of physical retailers.

If it's such a great advantage why aren't B&M shops closing down and replacing their stores with a shopify account?

Also, most internet sales are interstate commerce which the states have no business regulating. I can't believe the gall of the government to claim that using Amazon.com is not interstate commerce yet growing a plant in your basement for your own personal consumption is.

The SCOTUS is very clear that anything with the the potential to affect the interstate market for goods and services is interstate commerce.

Why can't the states respect that?