Online Sales tax – the party will be over
by Roger Chartier:
As Washington, Kentucky, New York, Kansas and North Dakota go, so will the others.
Nine other states have laws that are similar that are going to take effect very soon.
Those 5 states that have a sales tax rule about internet commerce taxing online stores like Amazon have to pay up the sales tax to them. States have different sales tax rates and some have none at all. Check your state sales tax rate.
The advantage of avoiding sales tax especially on big ticket items has kept a lot of the money flowing online. If you buy a TV for $1,000 and avoid the 6.5 percent sales tax that your state may have you just saved $65.00.
The playing field gets leveled and small retailers with physical locations aren’t the only bad guys who charge a tax.
It is still easier to shop from home but if you want to touch an item you most likely will have to go get in your car and drive.
A hard time will be had by all
All of this sounds like something that we can live with but the small time online store that just about generates enough to pay for some groceries for the family will have a tough time dealing with the handling of and paying tax. It is simple enough to charge $5.00 for an item and give free shipping but now there are tax forms and escrow and all the hoopla that makes it no fun at all.
At least the states will have a few more dollars to fix the roads and schools and line the politicians pockets.