Online tax inching closer
It's been a nice ride - the tax free ecommerce thing - but I fear it will come to an end all too soon. I'm surprised it's lasted this long.
Last month New York State passed a law requiring retailers to collect sales tax for any items shipped to New York. The wording of the law is a bit screwy, in that it only requires the tax from retailers that directly or indirectly solicit New York consumers - like placing affiliate links on a site owned by a New York company or resident. Amazon is suing New York claiming the law is unconstitutional. Actually they say it is, "invalid, illegal and unconstitutional." No doubt immoral and fattening as well.
Texas has now joined the me-too wagon and is investigating the possibility that Amazon owes it millions in sales tax dollars.
Today, the City of Chicago is suing eBay and its subsidiary StubHub for not collecting city amusement taxes on online ticket sales for Chicago venues.
Online retailers point to the 7,400 state and local tax codes throughout the US as far too onerous for them to track, collect and pay.
The great irony is that tax free online shopping hasn't saved the consumer that much money. Instead, it has shifted to shipping fees, which has resulted in a windfall for shipping companies.
Regardless, it is coming. I doubt even Amazon can stop salivating lawmakers from such a juicy new tax.
Last month New York State passed a law requiring retailers to collect sales tax for any items shipped to New York. The wording of the law is a bit screwy, in that it only requires the tax from retailers that directly or indirectly solicit New York consumers - like placing affiliate links on a site owned by a New York company or resident. Amazon is suing New York claiming the law is unconstitutional. Actually they say it is, "invalid, illegal and unconstitutional." No doubt immoral and fattening as well.
Texas has now joined the me-too wagon and is investigating the possibility that Amazon owes it millions in sales tax dollars.
Today, the City of Chicago is suing eBay and its subsidiary StubHub for not collecting city amusement taxes on online ticket sales for Chicago venues.
Online retailers point to the 7,400 state and local tax codes throughout the US as far too onerous for them to track, collect and pay.
The great irony is that tax free online shopping hasn't saved the consumer that much money. Instead, it has shifted to shipping fees, which has resulted in a windfall for shipping companies.
Regardless, it is coming. I doubt even Amazon can stop salivating lawmakers from such a juicy new tax.
posted by Imagescape @
3:35 PM
0 Comments
0 Comments:
Post a Comment
<< Home