Forty-Three States Pressing Taxation of All Internet Sales

Here's an article from a Colorado news station:

M ajority of States pressing for taxing all Internet sales

The article claims that all Internet sales will be subject to sales and use taxes and that this is due to be implemented by October of 2005.

You can go to www.streamlinedsalestax.org for details on how this is supposed to work. From the website, you can download the details of the plan. Here's a quote from the zipped .DOC from the site:

Chapter 3- Implementing the Uniform Electronic Process

Legislation

The Streamlined Sales Tax Project envisions two components to the legislation necessary to accomplish the Project’s goals. First, states would adopt enabling legislation referred to as the Uniform Sales and Use Tax Administration Act (“Act”). The Act allows the state to enter into an agreement with one or more states to simplify and modernize sales and use tax administration in order to reduce the burden of tax compliance for all sellers and all types of commerce. The Act does not require any amendments to a state’s sales and use tax law. Secondly, states would amend or modify their sales and use tax laws to achieve the simplifications and uniformity required by the participating states working together. The Project refers to this legislation as the Streamlined Sales and Use Tax Agreement (“Agreement”). Some states will require only minor changes to current law to implement the requirements of the Agreement. Other states with more complicated sales tax laws may require significant changes to current law to be in accord with the Agreement.

Certificate of Compliance

A certificate of compliance will document each state’s compliance with the provisions of the Agreement and cite applicable statutes, rules or regulations, or other authorities supporting such compliance. Public notice and comment will be provided before a state becomes part of the interstate Agreement. A state is in compliance with the Agreement if the effect of the state's laws, rules or regulations, and policies is substantially compliant with each of the requirements of the Agreement. If a state is found to be out of compliance with the Agreement, it will not be accepted into the interstate Agreement or will be sanctioned or expelled by the other participating states. In a voluntary system, sellers who are voluntarily collecting sales taxes for participating states may decide to no longer collect for the expelled state. Also, that state may not have a vote on changes in the Agreement.

Certificates of compliance? Sanctions by other states? I can't see how they intend to enforce this except by penalizing ISPs and online businesses in 'compliant' states.

Opinions?


[edit on 5-6-2005 by smallpeeps]

I don't see how they can enforce it, frankly. You could set up a website in a foreign country host (I imagine there are lots of sites that would be eager for this) and then collect through them.

I can think of a dozen ways around it.

I think they'd do better to just put on a front end tax.

it's actualy rather easy to enforce unfortunately, just ask the canadian government about that. the method? well how does that merchandise get to you? either through the mail or by courier. so when you recieve the packag, you also recieve a bill that needs to be paid, along with a special surcharge for that service. unless of course you get an option to pay your state tax at time of sale somehow.

i once bougt a crappy vidio game over the net for $20 when it got to my place i had to pay an extra $20 for tax and handleing surcharges. the same goes for books or anything else we buy and have shipped to us. it is a big piss off if you ask me. but the government wants their cut on everything. i have a freind who lives in the states. he came up for a lan party and brought his computer with him. at the border they charged him taxes on it. (he dosn't even live here, and went home afterwards). just because it was conciveable that he might leave it here. he had 3 choices. go back, have the computer confiscated, or pay the tax on it.

Originally posted by smallpeeps

I can't see how they intend to enforce this except by penalizing ISPs and online businesses in 'compliant' states.

Opinions?


[edit on 5-6-2005 by smallpeeps]

Well, here's a perfect example of how they can enforce it.

www.abovetopsecret.com...

The sales tax is ultimately the responsibility of the purchaser. In the above case they were able to force the online retailer to give up their records and the States are sending bills to the consumers. (I just got mine Friday.)

No one seemed to notice much when they did it to the cigarette vendors, but now the door is open wide.