Taxman Coming for Online Shoppers

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Taxman Coming for Online Shoppers

Support is building for a new law that would make online shopping more expensive. Online retailers do not collect state and local sales taxes unless they have a physical presence in the buyer’s state. And, even though 45 states require it, most consumers do not pay when they file their tax return.

With state and See more +

Taxman Coming for Online Shoppers

Support is building for a new law that would make online shopping more expensive. Online retailers do not collect state and local sales taxes unless they have a physical presence in the buyer’s state. And, even though 45 states require it, most consumers do not pay when they file their tax return.

With state and local governments strapped for cash, and brick-and-mortar businesses undercut by the lower prices of their online competitors, three Internet sales tax bills are working their way through Congress.

Todd Lard, of the Council on State Taxation, recently told a Bloomberg BNA tax roundtable that Congress has “gone further than they have in a number of years in terms of getting a legislative solution.”

Amazon – the nation’s biggest online retailer – apparently sees the handwriting on the wall. It has agreed to build warehouses in a number of states and will eventually collect taxes from customers in those jurisdictions. Experts expect the new warehouses could allow the company to offer same-day delivery -- opening a whole new front in its battle with brick-and-mortar businesses.

Produced by Josh Block

Follow: https://twitter.com/joshblock560

Bloomberg Law: https://www.bloomberglaw.com

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