Internet Sales Tax?
On Monday May 6, the Senate passed the Market Place Fairness Act (the “act”) that allows state and local governments to subject online shopping to state sales taxes. The act now moves to the House for a vote. If it passes the House, it will go to President Obama for approval. The president has expressed his support of the act in recent statements. Are you curious about what this could mean for you?
Well you are in luck. Listen to our very own Linda Griffin discuss this national sales tax issue on Newsradio 970 WFLA AM this morning:
The act would force online companies, like Amazon.com and Overstock.com, to collect local and state sales taxes. Under the act states can require online merchants to collect sales tax if they generate at least $1 million in gross sales in such state, regardless of whether they have a physical presence in such state.
Supporters of the act claim that it will “level the playing field” for non-internet companies that have always been required to collect such taxes. While opponents of the act claim it will turn online companies into glorified state tax collectors. These online businesses could be forced to collect sales tax in more than 9,600 tax jurisdictions each year. Will this lead to the downfall of large internet companies like Amazon.com?
Many Americans fear that this could be the first step towards a national sales tax. Is this just a trial run to perfect the collection of such tax? Only time will tell.