IMHO it’s only a matter of time before sales tax is collected on most internet purchases. The dire financial condition of some states will force them to set aside their objections and differences and agree on a minimum sales tax to be collected and distributed.
This will be equivalent to uncounted inflation. Not necessarily a budget buster, but certainly a permanent loss of purchasing power for people that use online vendors.
This will be equivalent to uncounted inflation. Not necessarily a budget buster, but certainly a permanent loss of purchasing power for people that use online vendors.
Time was when it was easy for citizens to avoid paying sales taxes on some purchases made online or out of state. Ebay and Craigslist wouldn't be as fun otherwise.
But skirting the law is getting more difficult. Now 24 states, plus D.C., are pricking shoppers' consciences with a special line on the tax return that requests a payment for sales taxes on any goods bought out of state, including those from online retailers—up from 20 states in 2008. Other states collect the tax in a variety of ways, some with special forms that taxpayers are supposed to fill out voluntarily. If, like many, you don't fess up, you may get a bill (see map).
States are trying to recoup some of the $20 billion or so they lose each year to online-sales-tax evasion. The gap exists for a quirky reason: States with sales taxes always have a "use tax" on items residents buy from out-of-state vendors. But a 1992 Supreme Court decision affirmed that out-of-state vendors don't have to collect the tax. It's up to taxpayers to track what they owe. Most don't. Tax Report: The Accidental Tax Evasion - WSJ.com