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Apr 29, 2009 -- States launch new effort to collect Internet sales tax

If you're like Clark, you've probably made an online purchase in the past instead of going to a traditional retail store. One benefit in doing so is that web purchases come without sales tax.

However, you still actually owe the sales tax!

North Carolina has been the most aggressive in trying to collect Internet sales taxes. They want residents to fill out a form that details what you bought online during the past year and then remit your payment to the state.

In most other states, however, they're simply green with envy over the revenue that's not coming in. In fact, state tax collections are at the lowest level they've been in 50 years.

Yet The New York Post now reports there's a coordinated effort by the states to introduce legislation into Congress that would tax all Internet purchases.

The consumer champ has really enjoyed the Internet sales tax holiday, but its day may be over. The big reason is that the economy is doing so poorly. States are seeking funds to cope with budget gaps and have decided to target e-shoppers.

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What others are saying

  • Unconstitutional tax?
    I believe this is a violation of the Constitution. Any tax imposed on out of state purchases violates the Commerce Clause of the U.S. Constitution because a substantial nexus is not established. Amazon has sued the state of New York over this issue and lost. This case and others like it will eventualy be appealed/heard by the Supreme Court. For now every state is looking for ways to enforce the collection of sales/use taxes on vendors and purchasers. Most states have enacted a use/sales tax law on online purchases, and until now have been lax in the enforcement of them. But with state budgets shrinking, they will look for new ways to collect taxes.
  • Internet taxes
    Great idea!!! Tax them all!!! Don't forget to tax the shipping companies based on their published shipping rates also. It's about time the shippers stopped skimming tax money from the government.

    Everyone should have to pay their share of the taxes. Why should Amazon.com have a major competitive advantage over virtually every other brick and mortar business in America?
  • internet sale tax
    The power to tax is the power to destroy. – John Marshall
  • internet sale tax
    A wise and frugal government which shall restrain men from injuring one another, which shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned. This is the sum of good government. – Thomas Jefferson (1801)

    One of the greatest delusions in the world is the hope that the evils in this world are to be cured by legislation. – Thomas B. Reed (1886)
  • Internet sale tax etc
    Go after music stealing? The music industry is making a hefty profit from online music sales. Especially now that they have gotten on the bandwagon and eliminated the rediculous protection schemes that caused so many problems.

    If you listen to the media you would think that every music artist in the world is destitute from music piracy. It's just not so. If they aren't getting their fair share look to the record labels themselves for skimming the biggest percentage of the profit for themselves.

    As for internet sales tax, I've had to pay tax on online sales. I don't know where everyone else is getting a free ride. If you buy from an online retailer who has a presence in your state you pay tax on the purchase. At least in California you do. It's no different than ordering from a catalog. If it's out of state, you don't pay tax. If those companies were to be forced to collect tax, they would have to know every tax rate for every city, county and state in the country. It would be a massive undertaking and will certainly put companies out of business.
  • Thank Goodness for going after this
    Now go after the music stealing. That is another lost revenue of sales tax.
  • Internet Sales Tax
    OK.. For your Right wingers.. How about were does this stop? How about Whay aren't those Buying and Selling stocks, MFunds, Bonds via the Internet, not paying their state's sales tax? Is it not a Commodity?

    How about Cars? You find one Out of state on the Internet, they ship it to your state, you buy it in your state and pay your states Sales Tax, why shouldn't the other state that had the commodity get the sales tax?

    Same goes for Buying Ciggerettes, Lotto Tickets, etc...

    Just to further support Socialisum & Corrupt Gov't. for the Loosers of this Country? I don't think so..
  • Internet Sales Tax
    The government came on way late in attempt to gain internet sales tax. I do believe the majority of consumers will agree and take measures to keep them (gov't) - out of thier "private purchase" affairs.
  • The little-known Use Tax
    Enforcing sales tax payments on people that make out-of-state Internet/mail order purchases is obviously invasive and messy if we consumers don't volunteer the info. HOWEVER, the reality that this tax (called Use Tax) is the law in the states where it's on the books.

    I was not thrilled when Illinois informed me about their Use Tax, but I understand that its intention is to protect the interests of the businesses that exist in Illinois (same for others states, I assume). I believe that it's about integrity, doing the right thing, and in this case it will cost you money, but not your conscience.

    BTW, I am of the Tea Party crowd, but I'm also of the Fair Tax crowd, and since this regards a consumption tax, I need to be fair & pay Use Tax.
  • Same ol' hustle, different venue
    Same here: if states start taxing out-of-state purchases, I will not purchase over the internet anymore.

    Do government officials honestly believe they can continue taxing us to death and prosper from it? Pitchforks and torches are comming, bank on it.

    Here in California, government officials are actually paid to cruise garage sales, record earnings and levy taxes on them, on the spot! Anyone around here actually put a number in the "use tax" box on their tax return? Are you kidding? MORE voluntary taxation? It's bad enough that Government taxes online-retailer earnings AND shipper earnings; now they want to tax the buyer as well. Will this insanity never end????
  • Internet Sales Tax
    As Amenda said when put in a sales tax and the shipping, the item might just cost more than at a local store. Then no bargin buying online. Just how whould these online store keep up with 50 different sales taxes, even more than 50 with counties having a differenent sales tax. Or they can make just one type sales tax for anything purchased online, say 5% period
  • amazon
    amazon stock is trading near 52-week high. if you own the stock, maybe you should think about selling some.
  • Internet Sales Tax
    I have do not view it as a sales tax holiday because that savings is at least partially eaten up with shipping charges. In a county in the eastern part of North Carolina our sales tax is 7%, and the county wants to raise it more.
  • Internet Taxes
    Why should there be no sales tax on internet sales? Unless you're campaigning to end all sales tax... It could be based on the state the purchaser is in to avoid all sites "moving" (virtually speaking, that is) to non-sales tax states.
  • Internet tax
    If it is passed, My days of buying on the intenet will be over. I refused to be gouged anymore by taxes!
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