Follow OhMyGov! on  OhMyGov on Facebook

  JOIN  or  LOGIN    ALSO ON OMG! : GET SOCIAL
712234

Bill to tax Internet purchases expected soon

As if the shipping & handling didn’t already get us

By OhMyGov! Apr 21 2009, 09:22 AM

The salad days of tax-free Net shopping may be nearing an end, if lawmakers and cash-strapped states have their way. Sen. Mike Enzi (R-Wyo.) and Rep. Bill Delahunt (D-Mass.) are expected to introduce a bill this week to close a “loophole” that has enabled shoppers to avoid paying sales taxes on Web purchases.

"This would be fiscal relief for the states that wouldn't require any money from the federal government," said Neal Osten of the National Conference of State Legislatures, which is drafting the bill. States are suffering from the lowest sales tax collections in 50 years, and face increasing pressure to fund essential services such as police and schools.

Because of complicated state and local sales tax rules, however, retailers aren't looking forward to figuring out the right amount of state sales tax to apply to a customer at the time of purchase. Groups like the Electronic Retailing Association and the Direct Marketing Association,  and e-tailers like Overstock and eBay are squarely against the proposed measure.

"If we ship something out to Long Island right now, we don't know what sales tax to charge or collect. And there may be two or three different levels. There may be a state [tax] level, a county level and a city level," Overstock.com president Jonathan Johnson III said.

More from the New York Post, Business Week.

Also Interesting:

[+] Postal worker stole nearly $700k in stamps, feds say

[+] Citizens fix in eight days what government wanted millions to do

[+] Area 51 offers best practices, but not from aliens

[+] Will the U.S. follow UK into the open source market?

[+] Environmental agency outed as major polluter

 

Read More: U.S. Congress, Business And Economy, Taxes And Spending, Massachusetts, Wyoming

 
 
 
Submit
COMMENT

 

         

 

 

                JOIN THE COMMUNITY!
 
 

 

jeffrey a.: these people are like locusts,they take everything and move on,i wonder how much money lea...  more Education Tay: Good to see Ecofont as I would say ink in any cartridge is harmful to the environment. The...  more Melissa: " One of the things I would like to bring up is that fact that if we spend less than ...  more

About OhMyGov!

The most fun government news has ever been...

Read More
Press Coverage

Site Tools

An array of helpful, fun features is coming soon!


Friends

We're on Facebook and Twitter: @OhMyGov
and @Bureaupat

See Our Partners