Will Your ECommerce Sales Be Subjected To State Sales Taxes?

Earlier in May, the U.S. Senate passed the Marketplace Fairness Act that has as its aim sales tax collection from all internet site purchases. The U.S. House of Representatives has not yet acted upon this bill.

Until now, online shoppers have enjoyed buying items from ecommerce sites largely sales tax free. Most existing state tax laws only impose tax collection responsibilities on businesses that have a physical presence in that state, such as a retail store or warehouse distribution location.

Many retail associations like the National Retail Federation endorse the plan. Big internet sales sites such as Ebay oppose such collections.

2012 internet sales exceeded $225 billion, so forecasted tax revenues could approach $20 billion. There are plenty of persuasive and powerful pros and cons to this argument. Stay tuned.

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